Ethereum slumps to fresh daily lows near $220 as market correction continues

  • Ethereum loses more than 10% on Friday.
  • Market cap declines by around $5 billion.

Following the 4-day long rally that lifted it to its highest level since early September at $280 on Thursday, Ethereum has gone into a correction phase and erased a large portion of the gains it recorded this week. As of writing, the ETH/USD pair, which fell to a daily low of $222, was trading at $230.75, losing nearly 13% on a daily basis. With today's fall, Ethereum's market capitalization decreased to $24 billion from $29 billion yesterday, according to the latest available data on coinmarketcap.com.

At the moment, the pair seems to be testing the Fibo 38.2% retracement of the Apr. 26 - May 16 uptrend near $220. With a break below that level, $214 (Fibo 50% retracement) and $200/$198 (Fibo 61.8% retracement and psychological level) could be targeted on the downside.

On the other hand, $250 (Fibo 23.6% retracement) could be seen as the initial hurdle ahead of $280 (May 16 high) and $300 (psychological level).

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