Ethereum Price May Plunge In Coming Days If ETH Fails Test At This Critical Support


Ethereum struggled below the resistance at $200 for a few days about a week ago and eventually overcame the hurdle. Settling down at $202 for a couple of days, it was evident that the ETH/USD pair was headed for a short term bull run which would send the price to its previous swing high at $220.

However, the climb towards $220 was never easy. The cryptocurrency met with resistance at the $205 and $208 levels. Having successfully scaled through those heights, prices climbed rapidly further and found support at $210.

Rebounding from the support level built at $210, Ethereum made a fresh commitment to the bulls. Staging a run towards $220 amid an 8% 24-hour price gain.

At the time of writing this piece (May 19, 08:12 hours UTC), ethereum is trading at $212 with over -2% price change over the last hour.

Currently trading at $212, ethereum maintains a market capitalization of $23.91 billion and about $17.74 billion traded in volume over the last 24 hours.

Also, read Vitalik Opens up about Ethereum Network since 2017, What does 2020 have?

ETH/USD Technical Analysis

The technical picture paints a short to medium-term bearish scenario. ETH/USD found major support at $176.56 when it initially crashed to the 1.0 (100%) Fibonacci retracement level.

Recovering a little at a time, the pair blasted through the resistance at the $187.47 (0.78 Fibo level) to set ahead of $200.

Prices broke the resistance at $215 (0.23 Fibo level) and are now looking to test higher heights. Above this level, major resistance lies at the $227 (0.0 Fibo retracement level) where Ethereum has had difficulties in previous months.

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Disclaimer : The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of Coinpedia. Every investment and trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Dare Shonubi

Certified cryptocurrency expert and Blockchain journalist covering crypto market analysis and general Blockchain adoption and development.

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