Azeez Mustapha is a specialist in Computer Studies (including DTP), Forex and Crypto trading professional. Being expert technical and currency analyst, as well as experienced fund manager and author of several books, Azeez places strong focus on crypto market studies conducting comprehensive price analyses and sharing forecasts of presumptive market trends.
Ethereum price has broken below the level of key technical support at 152.11, which will likely act as resistance in the future.
Cryptocurrency markets have been losing ground in recent weeks due to the lack of a positive catalyst. And Ethereum is also under this trend.
While most other cryptocurrencies are struggling to maintain their support levels, the ETHUSD pair has not given up much ground. Therefore, during the next upward movement, it is likely that the pair is leading the rally. Therefore, we do not recommend participants to close their long positions yet. They may add a stop loss on the price level at $ 130.
The longer the consolidation, the stronger the anticipated spike up or plunge for the ETH. It can be anticipated that the next move will be strong.
On the off chance that the price goes out of the general resistance at $ 199.50, there will be a recovery at $ 239.45 in place next. On the flip side, if the bears lower the price below $ 180, they are likely to try again from the price level at $ 152.11 in the support zone. The downtrend may be activated at a break in this area. However, participants may further maintain their long positions with stops at $ 130.
On the positive side, the fundamentals of ETH for its innovation shows a hopeful scenario since the blockchain for Ethereum recently experienced an increase in the amount of ERC-721 transfers made in a single day. The increase seems to be related to a particular decentralized application (dApp) on its network that is taking off.
The increase in the amount of ERC-721 transfers on the Ethereum protocol seems to be related to a decentralized gaming application that runs on the network. Gods Unchained is a trading card game that is built on the Ethereum blockchain. Every single card used to play represents an ERC-721 token on the Ether network. This gives users the true ownership of their virtual cards, which they can freely exchange in the open market.
Furthermore, MyEtherWallet (MEW), a UI client to collaborate with the Ethereum network, has reported another agreement with Rivet to meet its blockchain technological requirements. ETH users on the positive side see that long-term optimism may contain Ethereum’s vulnerability downwards when considering the fundamentals, buyers seek a perfect entry position as soon as the price reverses upwards.
Dominated by Bears, ETHUSD Plunge Below the Key Technical Support Zone
The bears had full control today, sinking the cryptocurrency pair below the key technical support zone on the level at 152.11 earlier in the day. While it may end today below the Thursday’s low at the 155.00 level, Ether has confirmed its breakthrough the prior session low after a trend below its intraday.
The price of ETHUSD has broken below the level of key technical support at 152.11, which will likely act as resistance in the future. Currently, the price has gone beyond the September low on the level at 152.85 and we can see a greater downward momentum if the potential sell entry is activated at the level.
The outlook remains bearish, showing an intact downtrend in the short, medium and long term.
Support Levels: $180.71, $152.11, $130.00
Demand Levels: $318.60, $224.71, $199.50