Ethereum (ETH), along with another major altcoin XRP (XRP), is currently taking a major beating as its ETH/BTC trading pair dives to lows not seen in *over* two years. Not to be outdone, Ether is threatening to give back some important support levels on the USD chart as well.
On the ETH/BTC weekly, we can see just how far back into the past we’re reaching - and where we might find support. Specifically, price has not been this low since March of *2017*. The good news, however, is that we may expect support to start coming in shortly; only about 7% down, a major support line should come into play.
However, we don’t see anything good out of the weekly indicators. RSI is trending clearly down; histogram is ticking down hard; and MACD has closed last week with a bearish cross (which may not stick). The daily looks equally bad.
Moving to the daily ETH/USD pairing, we see a double blow to the leading altcoin at time of writing. But there is an interesting knot of confluence that might buoy support for the leading altcoin.
Three things are converging at $175 as support. The first is the importance of this support itself, which was pretty hard to crack during May/June. The second is the important and highly viewed 55 exponential moving average (EMA), which is currently holding Ether’s fall. The third is the presence of a falling channel from the daily candle bodies, which ETH seems to be respecting at present.
A recovery in Bitcoin’s price, after today’s nasty dip, would help Ether recover its own USD price. Given how bad ETH/BTC is looking, though, this may not be enough to save it. The next area to watch is $240, if this one gives way.
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