Ether worth faces a potential 30% correction after not breaking $ 400
The momentum of the cryptocurrency market has recently declined to Bitcoin (BTC) as BTC dominance and trading volume have increased along with price. In this regard, the primary altcoin indicator Ether (ETH) has not performed well as ETH / BTC has fallen 30% in the past two months.
Now many crypto traders are asking when the altcoins will hit rock bottom and start raking again. Let's take a look at the charts.
Ether stays through 100-week and 200-week MAs
ETH / USD 1-week chart. Source: TradingView
The weekly chart shows an accurate range as the price of ether failed to break the resistance zone at USD 450. However, some bullish indicators can also be seen on the charts.
One of these bullish indicators is the breakthrough in the 100-week and 200-week moving averages (MAs). These MAs are often viewed as a key indicator of the bullish / bearish sentiment of the markets. With the price of ether breaking the MAs in the past few months, it can be said with confidence that this cryptocurrency is in the bullish territory.
Another bullish argument, however, is the break above $ 270, which has been resisting for over a year and has only been overcome in the past few months.
An obvious breakthrough occurred after which the price of ether rose towards $ 450. However, no clear support / resistance flip of this $ 270 zone occurred on this breakout, meaning a retracement towards this level is relatively healthy.
Therefore, a range between $ 270 and $ 450 is set based on the weekly chart. In other words, a likely retest of the $ 270 range is on the table.
If the USD 450 is broken higher, a continuation towards USD 800 is very likely.
Ether rests on support from $ 368 to $ 375
ETH / USD 1-day chart. Source: TradingView
The daily chart shows a potential wedge construction with decreasing volume. This rising wedge construction currently rests at the $ 368-378 support level. This level is critical for lower time frames.
If this area is lost, a sharp decline can be expected. In that regard, there is a test of the $ 315 level, or even the $ 270 level and possibly the $ 250 level on the table. If the $ 368-378 level is lost, the 100-day MA will also lose its support value, indicating more downside potential.
ETH / USDT 4-hour chart. Source: TradingView
The four-hour chart shows a slight upward movement over the past 24 hours. However, the uptrend failed to break the resistance zone at USD 400, which later resulted in a significant decline.
This decline was also caused by the weakness in Bitcoin markets and a significant inflow of ETH from a single company to the exchanges minutes before the decline.
ETH / BTC with potential support zones
Historically, the fourth quarter is not the best time to hold ETH until it hits bottom in December. So far this year it doesn't seem any different, as the price of ether has fallen 30% from its recent high of 0.04 sats.
ETH / BTC 1-week chart. Source: TradingView
The Ether chart versus Bitcoin shows a clear view of the support and resistance levels.
In the higher time periods, a potential support zone is approaching. Support has been found in the 0.024-0.026 sats area alongside the 200 week MA as this is the previous resistance zone where support must be sought.
ETH / BTC 1-day chart. Source: TradingView
Ether's ETH / BTC daily chart has shown a slight rebound in the past few days as the 0.028 Sats area served as support. However, there are still no signs of a reversal as the price of ether still appears to be correcting.
Bullish arguments can be made once the upper resistance zone breaks at 0.0315 sats and tips in support. Other bullish signs are that ether is bottoming at 0.026 sats and showing a bullish divergence below. This would be the strongest indication of soil structure.
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