Technical Analysis; ETH March 27

 ETH 15 minute chart

ETH 15 minute chart

Key Highlights

  • ETH continues to slide from the recent tops around $1,200, and goes even below $500 losing about 25% within a week as per CoinMarketCap top 10.
  • Currently speaking, ETH has lost about 3.44%, trading in a down trend line with a resistance of $470.16 on the 15 minute Chart.
  • The market cap of ETC is also facing a tremendous decline while Bitcoin's dominance is at a mend at around 44%.
  • Back to the Technical, I hope for a slight run to the 78.60% Fib Extension area with my 1st Price Target at $485.01 and a 2nd Price Target at $502.98. However, due to the respect I pay for trends, there still remain risk of further losses below $460 that may lead ETH to $430.
  • Yesterday, The upside move was capped by the $490-495 resistance zone. Moreover, the 38.2% Fib retracement level of the last drop from the $535 high to $466 low also acted as a resistance.
  • On the Hourly Chart, there is a downside channel that is formed with a resistance of about $495 and a major support level at $460.
Hourly downtrend channel
  • From the DMI, It looks like the bears are having a hassle standing their ground even though they are in command. The +DI reversed at $457.26, and the bulls took over from there.
  • There is also a bullish three outside up on the candle chart that confirms a Bullish Engulfing pattern. For this to occur certain criteria has to be met i.e. ETH should be characterized by a prevailing downtrend. We should also see a Bullish Engulfing pattern in the first two days. Then, we see a green candlestick on the third day with a higher close than the second day. This confirms that the downtrend is damaged.

Major Fundamental Factors

  • ETH's dip comes as part of a wider sell-off in the cryptocurrency market, where 90 of the 100 largest tokens saw drops over the past 24 hours
  • Bitcoin, the largest token with a market cap of $135 billion to ETH's $46 billion, saw a drop of nearly 4% over the time period.
  • In the short term, consensus among analysts suggests that ETH's current price has dropped below critical support. The big question is whether it can reverse fortunes and break past the $500 mark? Owning ETH at these low prices and in large quantities is a win Option!
This is not a investment recommendation nor to be representative of professional expertise, but to be used as a forum for opening discussions around trading. All examples and analysis used herein are for illustration purposes only, and of the personal opinions of Cultrix. All examples and analysis are intended for these purposes and should not be considered as specific investment advice.  The RISK of loss in trading cryptocurrencies can be SUBSTANTIAL.