Recall that Ethereum was dancing around $200 for weeks before it finally spiked up the charts a few days ago. However, it now appears that the ETH/USD pair hasn’t truly escaped the grasp of a bear market threatening to pull prices below critical support at $200.
May 25, 04:25 hours UTC, ETH was changing hands at $202 after plunging by a considerable 5% since yesterday. At this market situation, the coin’s market capitalization remains steady at $22.47 billion amid $12.07 billion of 24 hours trading volumes.
It would appear that Ethereum, as well as other major altcoins, are mirroring BTC in a current price plunge. The general crypto markets’ capitalization is down by a little margin amid hopes of a revival in the short term.
ETH/USD Technical Analysis
On the 4-hour chart below, the ETH/USD pair is seen to have closed below the $200 mark on May 24. Touching as low as $197 in the process, Ethereum seemed to bounce off strong support at the 38.2%. Fibo retracement level ($198).
In recent times, Ethereum behaved in a similar manner around $197. The top cryptocurrency almost always gives the bull a chance to reverse a bear trend, thereby building strong support at around $200.
However, if the bears push further, they may gain an advantage at plunging the price further towards $196 at the 23.6% Fibo level. Below this, additional support lies at $191.
In the bullish possibility, the initial level of resistance is expected at the 61.8% Fib level ($203.65) beyond which further resistances lie at 78.6% and 100% (207 and 211) Fib levels respectively.
Binance Launches Ethereum Options Contracts
World’s largest cryptocurrency exchange, Binance, announces addition of options contracts for Ethereum and XRP. The top crypto exchange becomes the first exchange to add support XRP options. Options are financial derivatives with leverage which allows the buyer of the contracts to buy (call option) or sell (put option) the underlying asset at a specified price on expiry.