Breaking: Ethereum erases $4 billion in market capitalization within hours
- Ethereum is currently trading at $337 after plummeting from a high of $376.
- ETH could be aiming to re-test the critical $300 support level.
Ethereum lost more than 10% of its value within the last 12 hours dropping from a $42 billion market capitalization to a current low of $38 billion.
ETH/USD 4-hour chart
Ethereum formed a bear flag on the 4-hour chart which started its flag pole On September 1. The upwards consolidation period started on September 6 and the pattern has now clearly broken bearish now but has not yet slipped below the low of the pole at $310.
ETH IOMAP Chart
The IntoTheBlock’s In/Out of the Money Around Price model (IOMAP) shows the next support level to be at $337 followed by $326. However, the biggest support levels are found at $304 and $294 where 861,000 addresses and 927,800 respectively bought ETH. A maximum possible target for the bearish outlook would be close to $200 as that's the length of the flag pole. The IOMAP seems to indicate that Ethereum is poised to re-test at least the $304 level.
On the other hand, the smart-contracts pioneer is not facing a lot of resistance well until $365 but there doesn't seem to be a lot of bullish momentum to push it to that level. If bulls can recover, ETH price will be looking to reach $365 where the next most important resistance cluster is located at.
Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
