Ethereum Breached Key Support Level, Further Losses Still Possible
Ethereum breached the key support level after the wild week when Bitcoin aggregated the crypto market and most of the altcoins have been unable to avoid the huge volatility that was brought about by the relatively large price swings. Letâ€™s find out more in the Ethereum latest news.
The volatility of the markets has been overwhelmingly bearish for ethereum and even led the troubled cryptocurrency break below the key weekly support level which signals that ETH could be at risk for incurring dramatically further losses against both BTC and USD. At the time of writing, Ethereum is trading down by 1 percent at its current price of $148 which marks a notable drop from the previous highs of more than $156 that was set last week.
It is also important to keep in mind that Ethereum is trading right now dramatically from the recent lows of $130 which was set on November 24 during the huge price drop of Bitcoin to $6,500. Ethereum was able to post a rapid bounce from the price level however showing that it was sold off and that this could mark a very important long-term support level.Â On the 27th of November, Ethereum once again received a high influx of selling pressure that led to a massive price drop of about $144 but the buyers defended this level quickly allowing it to surge higher. This way, Ethereum breached the key support level and closed below its lower Bollinger Band on the weekly charts. The popular crypto analyst Big Cheds noted:
Â â€œ$ETH #Ethereum â€“ Weekly chart â€“ First breach of lower BB since December 2016.â€™â€™
Ethereumâ€™s previous close below the weekly Bollinger band in 2016 was closely followed by the major rally and the conditions surrounding the aggregated crypto markets which are bearish at the moment and it is highly unlikely that ETH will break the close correlation to BTC and surge one by one. Nik Patel, another popular crypto analyst explained:
Â â€œThere does not appear to be much support left below $125, so it is vital that price is able to remain above here. Given how Bitcoin looks at the moment, however, it appears that ETH/USD is poised for more downside. The following support would be at $100, which is a long way away.â€™â€™
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