Ethereum is down more than 50% in a day against the US Dollar. ETH price broke many crucial supports and it is now approaching the $78 and $68 support levels.
Ethereum collapsed below $150 and $100 in a harsh market crash against the US Dollar.
The price is forming a huge bearish candle on the daily and weekly chart.
There was a break below a major bullish trend line with support at $183 on the weekly chart of ETH/USD (data feed via Kraken).
Bitcoin price is down more than 45% and it broke the key $5,000 support area.
Ethereum Price Could Dive Further
In the past three sessions, we saw a massive decline in Ethereum from well above the $195 level against the US Dollar. ETH price tumbled more than $100 and broke many important supports to start a strong downtrend.
The decline was such that there was a substantial close below the $150 level and the 100-week simple moving average. Moreover, there was a break below a major bullish trend line with support at $183 on the weekly chart of ETH/USD.
Ethereum also failed to stay above the 76.4% Fib retracement level of the last major upward move from the $111 swing low to $292 high. It is now trading below the $100 support and it might continue to move down.
An initial support is near the $78 level (the 2018 swing low). If the price fails to stay above the $78 support, it could continue to move down towards the $68 support level.
The mentioned $68 support holds a lot of importance since it is the 1.236 Fib extension level of the last major upward move from the $111 swing low to $292 high. Any further losses could decrease hopes of any crucial bounce in the coming months.
Long Lasting Bearish Trend?
The recent collapse in Ethereum and bitcoin destroyed the market sentiment and the current bearish sentiment might last for a few months.
The market changed its course and in order to recover the bulls need to put up a strong fight. If they are able to protect the $78 and $68 support levels, there are chances of a recovery. The last line of defense in the long term could be the $50 zone.
Weekly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
Weekly RSI – The RSI for ETH/USD is currently diving below the 40 level, with a bearish angle.
Major Support Level – $68
Major Resistance Level – $125