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Ethereum price analysis: ETH/USD crashing down, eyes on $400.00

  • Ethereum continues sliding to new lows, controlled by the bears.
  • ETH/USD needs to get back above $500.00 to mitigate selling pressure.

Ethereum emerged as one of the biggest losers on the cryptocurrency markets as the digital coin crashed below $500 and tested  the lowest level since December 11, 2017 at $439.98

It is obvious that people are losing faith in crypto recovery tale and start taking money from the market. ETH is the smart contract currency that is used in ICO projects, targeted by both regulators and media giants. It makes the coin especially sensitive to the news about advertising bans and regulatory crackdowns in Initial Coin Offerings.

Ethereum is still the second largest coin by market capitalization, but the recent crash has wiped out over $10B of ETH value in a single week. The market dominance of the coin is also shrinking from over 20% at the beginning of February to less than 15%.

Ethereum technical picture

ETH/USD has recovered to $448, but it is poor consolation for ETH enthusiasts. The hourly chart doesn't look inspiring as the price stays well below both 50 and 100-SMA The recovery may gain traction if the coin clears $475 (50-SMA, hourly interval) and $500.00 (100-SMA, the hourly interval) resistance levels with major hurdle spotted at $570.00, which coincides with 61.8% Fibonacci retracement level. On the downside, the focus shifts onto $420, which is the lowest level since August 2017. The ultimate support is noticed at $400.00

ETH/USD, the hourly chart

ETH/USD, the hourly chart

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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