Analysis

Ethereum [ETH] likely to test $155 support area as market turns into a sea of red

ETH

It seems that the bull run is over and as expected markets are dumping as we enter the weekend. Nearly $ 16 billion has been lost in the past 24 hrs as the markets have plummeted from the 2019 high to somewhere in the vicinity of $170. At the time of print, the total market cap of the cryptocurrency industry stands at $170 billion which tells a story of its own. Bitcoin fell below $5,000 for the first time in a week and settled at $4,950 before recovering slightly. The failure to break resistance at $5,400 has sent BTC back down as it drops around 4% on the day. Most of the top 10 coins are being hammered and some are down by double digits as the market has turned into a sea of red. Ethereum has also experienced a bigger fall with a drop of nearly 3 percent bringing it down to the $162 mark and there is no push for the coin to take it towards $200 mark. ETH is falling and rising in tandem with its big brother and its fate seems to be intertwined with the fate of Bitcoin.

ETH/USD

At the time of print, the coin has found support at $165.31 and is trading just below it. After struggling near the $185 resistance, ETH price started a downside correction against the US Dollar. Recently, there was a marked increase in selling pressure and the price broke the $165 support level. There is also a key bearish trend line in place with resistance at $164 on the hourly chart of ETH/USD. The key resistance for the coin stands at $181.65 and the coin is trading well below it. The hourly RSI indicator stands at 39.8595 which suggests that the coin is fast approaching the oversold territory. The MACD shows that the coin is in the bearish zone and the 100 EMA line shows a downtrend.

ETH/BTC

At the time of print, the coin is down by 0.64 percent and one ETH is equivalent to 0.03240146BTC.

Latest Updates

  • Earlier this month, Ethereum announced the launch of the revolutionary Ethereum 2.0 testnet where the much-awaited Proof-of-Stake consensus algorithm will be integrated. The initial stage has been dubbed as testnet0 while other stages are expected to bring onboard sharding technology as well as expanded capacity for the Ethereum network.
  • Recently, BitMEX research identified a potential bug in Ethereum’s Parity node. The node which started on March 1 is yet to fully sync with the Ethereum chain. Parity node is yet to catch with the main chain tip and is behind by a several hundred thousand blocks.

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