The daily chart reveals that the Ethereum price is approaching a crucial support level, similar to Bitcoin (BTC).
Resistance levels: $620, $640, $660
Support levels: $420, $400, $380
ETH/USD is trading down 8.33% at its current price of $521.51, which marks a notable decline from its daily highs of $577 today when the bulls attempt to spark another rally. In the next negative movements, ETH/USD may find some support in the lower $480 level, as it has bounced multiple times after visiting this level.
What to Expect from Ethereum (ETH)
The Ethereum (ETH) is currently following the bearish trend with a tremendous price drop. Although many traders were expecting a lot from the coin before it suddenly changes to the downside. Meanwhile, the majority of the altcoins started trading today with a fall as the Ethereum price is seen trading under the 9-day moving average but yet to break below the lower boundary of the channel.
Moreover, a bearish drop may likely roll the market down to the support level of $420, $400, and $380 while a possible bullish surge may drive the market above the moving averages at the $580 resistance level. Meanwhile, the $620, $640, and $660 may further provide resistance levels for the market. The technical indicator RSI (14) is facing the negative side and staying there may cause the coin to fall below the critical supports again.
Against Bitcoin, the market price remains within the negative side but still trading above the 9-day and 21-day moving averages. The bears are already taking over the market as ETH/BTC is currently trading at 0.0303 BTC and the bulls failed to push the price upward. Meanwhile, if the market continues to drop, the next key supports could be 0.0270 BTC and below.
However, on the upside, a possible bullish movement may surface and this could push the market to cross above the upper boundary of the channel, once this is done, the resistance level of 0.0330 BTC and above may be visited. As for now, the RSI (14) is seen moving below the 55-level, suggesting that the market may continue to fall.
The Bitcoin price continues to follow the bearish movement as the price drops below $18,850.
BTC/USD Long-term Trend: Bullish (Daily Chart)
Resistance Levels: $20,600, $20,800, $13,000
Support Levels: $17,800, $17,600, $17,400
BTC/USD is hovering at $18,820. There have been instances when BTC has exchanged hands below $18,550 sustaining the bearish price action is a downhill task. As the daily chart reveals, the path of least resistance is still downwards with the formation of a bearish pennant pattern.
Where is BTC Price Going Next?
The technical indicator RSI (14) reveals that the market movement is bearish. Despite the drop suffered, the technical indicator remains within the overbought zone. This could mean that there is still room that may be explored by the bears. Therefore, BTC/USD may continue to follow the downtrend if the market price crosses below the 9-day moving average.
On the upside, recovery may not come easy but any attempt to cross above the upper boundary of the channel may negate the bearish scenario and allow for an extended recovery towards the resistance levels at $20,600, $20,800, and $13,000. However, an increase in selling pressure across the market could force the Bitcoin price to follow a painful path towards the support levels of $17,800, $17,600, and $17,400.
BTC/USD Medium-Term Trend: Ranging (4H Chart)
On the 4-hour chart, the Bitcoin bulls have not been able to push the market price above the 9-day moving average. The chart reveals that the coin survived the $18,500 support as the market rebounds from the low of $18,502. However, the Bitcoin price is likely to return to the bull market if the price breaks above the $19,000 level. Higher resistance is located at $19,500 and above.
Moreover, if the price drops below the 21-day moving average, even $18,500 may not be able to hold the support as the RSI (14) faces the south. Therefore, the king coin is likely to fall visit the $18,200 and below if the price breaks below the lower boundary of the channel.