Ethereum has flashed a sell signal overnight as it lost the $203 level of support, with it now acting as a point of resistance.
The sell off coincided with a plunge in the value of all major cryptocurrencies, with Bitcoin also falling back to the $8,830 level of support before finding a bounce.
Ethereum fell to as low as $192 before triggering a relief rally to the upside, although until it can break back above $203 the short-term trajectory looks gloomy.
It’s worth noting that $192 is a key level of support with the previous touch leading towards a 12.66% rally to the upside.
In order to break the bearish cycle of consistent lower highs Ethereum needs to trade back above $290 and preferably $366 as they were the respective yearly highs in 2019 and 2020.
Failure to do that would result in a prolonged bearish phase in the market, with potential downside price targets emerging at $152, $117 and even $81, which was the low on December, 2018.
In the immediate future if Ethereum can begin to break above the 50EMA on the four-hour chart it would set itself up for a continued rally into the weekend, with $210 becoming a likely stopping point.
The daily RSI has also start to tick back to the up for the first time since May 18, although no bullish divergence against the price is present.
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Ethereum was launched by Vitalik Buterin on July 30 2015. He was a researcher and programmer working on Bitcoin Magazine and he initially wrote a whitepaper in 2013 describing Ethereum.
Buterin had proposed that Bitcoin needed a scripting language. He decided to develop a new platform with a more general scripting language when he couldn’t get buy-in to his proposal.
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