Ethereum Price Is Sitting Precariously On Key Support Line: Will It Hold?

Ethereum Price Is Sitting Precariously On Key Support Line: Will It Hold?

The Ethereum price pulled back on Friday as volumes fell and the rest of the cryptocurrency market started to lag. Experts peg key support levels for Ethereum in the $850 neighborhood with resistance levels at about $865. For now, the market is in a sort of holding pattern. Some technicians have identified a reversal pattern on the Ethereum price chart, but others feel a positive breakout is more likely from here. One thing they do seem to agree about is that the Ethereum price is sitting at a crossroads with big movement likely in other direction.

Profit Confidential pointed out several signs of investor frustration with Ethereum and other cryptocurrencies. For example, the total market cap of all cryptocurrency is stable at around $460 billion. This is unusual because the market has been extremely volatile for many months. Additionally, just $20 billion worth of cryptocurrencies are changing hands each day now, versus the $70 billion that was being traded daily a few months ago.

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As far as Ethereum in particular, CoinMarketCap shows that the volume has been stable in the $1.9 billion area for the last two days. Currently, the Ethereum price sits right at the $856 level, which is one that chart technicians are watching closely because it represents a key support area, according to multiple chart experts.

ETHNews pegs support for the Ethereum price at $850 and also identified a breakout pattern that’s building on the chart, setting support closer to $855 on the two-hour price chart. The site emphasizes that it’s the two-hour chart that’s showing off the bullish trend, which apparently can’t be seen on longer charts referenced by other sites.

ETHNews identified a bullish trendline building off support pegged at $855 and a bearish trendline bumping up against the next resistance level at $875. The site explained that if the Ethereum price is able to close above $875, then it could rally to the next resistance level, which it pegs at $910. If the cryptocurrency manages to pass that resistance level, then they see a rise toward the next resistance level at $950.

However, in the event that the bearish trend is the one that ends up actually taking hold, they warn that a move under the support at $855 could pressure the Ethereum price all the way down to $800. They noted that the 30-minute price chart was showing signs of this bearish trend. With Ethereum sitting at $856 as of the time of this writing, it’s in a very precarious position, according to this model. Just a slight tip lower could mean a strong downward slide.

Others are even more convinced that Ethereum is heading lower for now, as Daily FX pointed out the head-and-shoulders pattern that’s emerging on the price chart. The neckline was right around $800, while the support zone was estimated at $770, which the site expects to begin the next downward leg. Daily FX also identified trend-line support below there, following by the 200-day moving average and then the February low point at $565.

NewsBTC noted that the bearish trend which emerged on the Ethereum price chart on Thursday continues to hold. In order to break out of this bearish trend, the site states that the price must break out past $866. Things don’t look very promising right now, NewsBTC also sees major support at $856, which is right where the Ethereum price is sitting as of this writing.

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