Technical Analysis; ETH March 27
- 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.
- 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!
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