Ethereum Loses Second Place Again. Pullback or Downtrend Resumption?

Price Predictions
Fri, 01/11/2019 - 06:38
Thomas Hughes
Once again, Ethereum and Ripple switched places in CoinMarketCap rankings, with the latter moving to number 2 spot.
Cover image via U.Today

Once again, Ethereum and Ripple switched places in CoinMarketCap rankings, with the latter moving to number 2 spot. The difference in market cap is very slim, both digital assets standing at $14 billion, so another flippening is not out of the question.

We warned several days ago about a potential pullback on ETH/USD, but the speed of the current drop makes us wonder if we are dealing with a retracement to the short-term uptrend that started on the Dec. 15 last year or a resumption of the long-term downtrend of 2018.

Chart Analysis – ETH/USD

Having dropped almost 12% in the last 24 hours, Ethereum is now trading at 134 against the US Dollar and has reached a major turning point represented by the 200-period Exponential Moving Average on a 4-hour chart.

True downtrend resumption will only occur when the low at $83 is breached, but until then a break of the 200 EMA could mean a major blow dealt to the bulls and one that would suggest a further drop. If the said barrier is broken, the next destination will be 127 and the trough at 117. The RSI has just entered oversold on a 4-hour chart, thus slightly increasing the chances of a move up.

Support zone: 127 and 117 (unclear how price behaves at 200 EMA)

Resistance zone: 50 EMA (red line) followed by 165 - 170

Most likely scenario: a touch of 127, possibly 117

Alternate scenario: recovery and move up based on the oversold position of the RSI

Subscribe to U.Today on Twitter and get involved in all top daily crypto news, stories and price predictions!

About the author

Thomas Hughes is an executive editor of U.Today. He is a skilled cryptocurrency trader and technical analyst deeply immersed into the cryptocurrency & blockchain technology area.

Top 10 Best Cloud Mining Sites in 2020
TOP 20 Best Bitcoin Trading Bots in 2020

This site uses cookies for different purposes. Please set your preferences in Cookie Settings and visit our Cookie policy for more information on how and why cookies are used on this site. Click here for cookie policy