As Bitcoin (BTC) has headed down – and continues to – during the past month, the leading altcoin Ethereum (ETH) has slid with it, and has now broken through a very important support level. This is the second time during 2019 that ETH has broken through a major support, this time on the ETH/USD chart (with the first being paired against Bitcoin). Anything seems on the table now, including a retest near the 2018 for a multi-year double bottom.
We start with a 3-day chart to get a grand view of things, and see that the important support around $155 finally gave way last week on the third big retest. With this support broken, we are now firmly back in 2018 bear market territory, as $155 formed the top of that market which was only broken out of in April 2019.
One thing we notice on this chart, which feature is shared on the Bitcoin chart, is that volume is generally lower now than it has been for much of 2019; and specifically, volume on this rupture of $155 is much lower than it was in November of 2018, when it was first taken out.
This is probably a good thing, signifying that this dive through $155 is not as serious as it was last time.
Moving to the daily ETH/USD chart, we see that price had got into oversold conditions, and bounced with Bitcoin. But we should not rule out another drop to even lower levels, as the general Ethereum downtrend looks nowhere defeated at this time. The next support level down, derived from February 2019 support, starts at $130 and will be the next serious candidate for a local bottom if we see another dip.
We see the histogram starting to contract after diving deep into negative territory, but no acceleration in contraction rate. It will take a while for this structure to get even close to the positive side again.
Finally, on the ETH/BTC side of things, we see what may be a consolidation in between a clear support level and the “capitulation line” of 2019. This marks the previous lowest price that held up since 2017, that was taken out this year.
Price here seems to be narrowing, with a shrinking histogram range. Ethereum/BTC has lately been moving *with* Bitcoin, which has only served to amplify its USD price movements. Now with a Bitcoin downtrend in play, perhaps the relationship between Bitcoin and ETH/BTC will start to switch – and if price breaks soon from this consolidating structure, we could get a clear answer on that subject.
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