Since the cryptomarket bloodbath that began on the start of the year and got extended up to now, altcoin prices have struggled to stay afloat. Most altcoins in the market have lost more than 70% from their all-time high levels. Ethereum price action is on a huge downtrend but is attempting to recover from key oversold level. As of press time, total market capitalization is at $214 billion, Bitcoin dominance is at 52.3%, and Ethereum price is at $295 trading over the US dollar and 0.0460 BTC trading over Bitcoin.
Trading over Bitcoin, Ethereum price fell through the descending channel and bounced off the 0.786 Fibonacci level acting as triple support. The triple support is formed by the coincidence of the Fibonacci level, the bottom Bollinger Band, and the trendline support going back to October 2017. Price is currently facing resistance from the lower downward trendline of the descending channel. The MACD is currently below the signal line and is arching back upward. The RSI bounced from the oversold region and is attempting to push above the downward sloping resistance line. A successful break above the RSI resistance line and the MACD signal line could fuel upward price recovery targeting to break the downward sloping resistance channel.
On the Ethereum/USD traiding pair, Ethereum price is trading around the $295 mark. Price broke below the support level at the $380 level and plummeted to the $250 level. Price action is currently moving along a downward sloping channel and bounced off the $245 mark. The next support level at the $250 mark going back to September 2017 is struggling to hold ground and is a crucial support line for Ethereum. The MACD is currently slightly below the signal line with an upward arching movement. The RSI just bounced from the oversold region and currently faces strong resistance. The recent bounce in price action will be a confirmed reversal if RSI continues upward rally breaking resistance and MACD crosses over the signal line. A trend reversal will target the strong psychological resistances at $300 and $350 mark. As of the moment, the next price action could still go either way.
Considering fundamental developments in the Ethereum blockchain, Ethereum is highly undervalued with huge potentials of growth. Plan your trades accordingly.
(DISCLAIMER: This is not financial advice. The analysis and recommendations provided here are based on my own research and personal opinion. Trade wisely!)