Ethereum (ETH) Breaks Key Support – Where to Next?

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Ethereum (ETH) Breaks Key Support – Where to Next?

I’m coming to you from the midst of a bloodbath across the industry. While some market participants are panicking, we were, in fact, ready for this storm and were prepared to take advantage of the low prices. Here’s my disclaimer, I do own Bitcoin and along with other digital assets including Ripple’s XRP, Stellar Lumens (XLM), Ethereum (ETH), IOTA (MIOTA), Dash (DASH), and NEM (XEM) among others. And I do think we may see further drops across the board before that major rally begins somewhere next year, in 2019. So with that in mind, let’s do a market sentiment analysis for the Queen to Bitcoin’s King, Ethereum.

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ETH/USD Technical Analysis

Looking at its weekly chart, Ethereum’s price broke below the key support level of $191 on Monday, reaching its lowest point for 2018. In fact, the last time Ethereum was this low, was back in July 2017. In November 2017, Ethereum broke a 4-month consolidation to the upside, which led to the digital asset reaching an all-time-high level of $1,418 within two months.  Two years ago, in November 2016, Ethereum was bouncing off mere $11.

Ethereum - U.S. dollar (ETH/USD) Weekly Chart Technical Analysis
Ethereum – U.S. dollar (ETH/USD) Weekly Chart Technical Analysis

With the market not seeming to have any long-term pattern, the only thing that may keep Ethereum from crashing back down towards November 2016 lows of $11, is the next support level at around $80.

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On the bright side, do I see the market bouncing back up in 2019 once reaching these lows? Yepidee yup. But of course, I’d like to hear from you too. Do you think the Dr. Dooms are right by predicting that the cryptocurrency market will crash to zero, with no hopes of it getting back up? Or are you on the bull camp, stacking up your cryptos for future capital gains? Let me know in the comments, subscribe, and tune in again for more updates tomorrow. Also, remember that as the 4th point of the IDDA technique, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio.

Don’t forget to complete your risk management due-diligence before developing your investment strategy.

Invest responsibly,