Key HighlightsETH price failed to recover and declined below the $150 level declined against the US Dollar.There is a short term bearish trend line in place with resistance at $150 on the hourly chart of ETH/USD (data feed via Kraken).The pair traded to multi month low and it could continue to move down below $140.Ethereum price fell sharply against the US Dollar and bitcoin. ETH/USD broke the $150 support and it is currently consolidating losses.Ethereum Price AnalysisYesterday, we saw a major decline below $175 in ETH price against the US Dollar. The ETH/USD pair broke the $179 and $175 support levels to start a fresh decline. Later, bitcoin price declined heavily and broke the $5,000 support. It increased bearish pressure on ETH and pushed it below the $165 and $160 support levels. More importantly, there was a break below $150 and the price settled below 100 hourly simple moving average.A new multi month low was formed at $142 and later the price started consolidating losses. It recovered a few points above the $145, but there are many hurdles on the upside. An initial resistance is the 23.6% Fib retracement level of the recent decline from the $179 high to $142 low. Moreover, there is a short term bearish trend line in place with resistance at $150 on the hourly chart of ETH/USD. If there is a break above the $150 and $151 level, the price could correct towards $160. It represents the 50% Fib retracement level of the recent decline from the $179 high to $142 low.Looking at the chart, ETH price is trading in a nasty downtrend and it could decline further below the $142 low. The next major support is near $140, below which the price could trade to $125.Hourly MACD – The MACD is slowly moving back in the bullish zone.Hourly RSI – The RSI is currently attempting a recovery from the oversold area.Major Support Level – $140Major Resistance Level – $160
Bears hit the cryptocurrency market today, and Ethereum was among the most severe casualties.The world’s third largest cryptocurrency erased as much as $2.25 billion from its market cap. Meanwhile, its value plunged 12 percent from an intraday high at $177 to $155.60 – its new intraday low – within a few hours, according to aggregated data available at CoinMarketCap.com. Aayush Jindal, a crypto market analyst at NewsBTC, predicted further declines in the Ether-to-dollar market, citing a critical bearish trendline that is capping every upside attempt of the digital currency.SOURCE: COINMARKETCAP.COM“There is a key connecting bearish trend line formed with resistance at $178 on the hourly chart of ETH/USD,” he forecasted.ICOs Likely to Intensify Selling ActionA report coming at the behest of Diar, a daily crypto newsletter, also found strong bearish catalysts that point to an extended selling action in the Ethereum market. The study based its bearish prediction on the possibility of the leading ICO projects liquidating their ETH holdings.“Some of the most popular and anticipated projects, most of which have yet to launch, are sitting on treasuries north of $500Mn. That’s excluding their cash on hand, as well as their own token reserves,” Diar research found.Larry Cermak, head analyst at Diar, believed that these decentralized applications project would become unprofitable. Meanwhile, they will continue shorting Ether to cover their expenses against the lower market demand. The imbalance will prove bearish to the Ethereum market, overall.“Obviously, a lot of the ICO companies will continue selling ETH to cover operating expenses and to fund their businesses,” Cermak said in a tweet. “It’s important to realize that the majority of these projects isn’t generating any revenue. And most likely never will.”Demand to Drive Ether BullsThe Diar analysis offered its predictions based on how ICO projects would behave with their Ether holdings. It provided a more straightforward view of the projects that reportedly holds roughly 3.7% of the total Ether coins in circulation. While the likelihood of ICO project selling their entire holdings is high, the same cannot be predicted on the demand side which keeps fluctuating.Retail investors, hedge funds and every other speculator could keep looking at Ether as an investable asset, similar to Bitcoin. On the other hand, blockchain projects could create network effects for their platform growth and use Ether as money or store-of-value.Then, scalability should continue to challenge the Ethereum network and hamper its adoption rate at a larger scale. Other projects are also developing in the blockchain space to circumvent Ethereum’s shortcomings but even they are facing challenges over some factors related to feasibility – and even decentralization.In a near-term scenario, the Ethereum market should act on the whims of speculative investors. That means, an extended selling action should establish a new bottom and retrace its steps to find an equally crucial resistance – just like Bitcoin.
Key PointsBitcoin price is currently under pressure below the $5,500 resistance level against the US Dollar.There was a break below a key bullish trend line with support at $5,530 on the hourly chart of the BTC/USD pair (data feed from Kraken).The price is declining and it seems like it could break the $5,230 and $5,200 support levels.Bitcoin price is moving lower towards the last low against the US Dollar. BTC/USD could accelerate declines below if there is a break below the $5,200 support.Bitcoin Price AnalysisThe past few hours were pretty bearish because bitcoin price was rejected near $5,600 against the US Dollar. The BTC/USD pair started a fresh decline and traded below the $5,550 and $5,500 support levels. There was even a break below the $5,400 support and the 100 hourly simple moving average. It opened the doors for more losses towards the $5,230 and $5,200 levels.During the slide, there was a break below a key bullish trend line with support at $5,530 on the hourly chart of the BTC/USD pair. Later, the price traded below the $5,350 support and the 1.236 Fib extension level of the recent wave from the $5,414 low to $5,700 swing high. The current price action is super bearish and it seems like the price could even break the $5,206 low. An immediate support is $5,230 and the 1.618 Fib extension level of the recent wave from the $5,414 low to $5,700 swing high. If there are more losses, the price could even trade below the $5,200 support.Looking at the chart, bitcoin price is at a risk of a downside break below the $5,200 and $5,150 levels. There are even chances of a test of the $5,000 handle in the near term.Looking at the technical indicators:Hourly MACD – The MACD for BTC/USD is gaining pace in the bearish zone.Hourly RSI (Relative Strength Index) – The RSI is well below the 30 level.Major Support Level – $5,200Major Resistance Level – $5,500