Since a local top was hit on Tuesday the $ETH price has fallen nearly 13%. The major support at $4,000 has been pierced through again, but has $ETH now found its swing low at the concurrence of the $3,700 horizontal support and the ascending trendline?
The daily time frame shows the $ETH price to be at a very critical juncture. Following Bitcoin’s lead, $ETH has fallen steadily since making a lower high early this week. Having fallen around 13%, to just kiss the ascending trendline and having come up against strong horizontal support at $3,700, could this be a good time for a bounce?
Caution should be exercised, even if this does look like a likely area for a bounce. Bitcoin is still coming down, and a sudden plunge from the crypto leader could cause chaos among the altcoins.
A bird’s eye view of the $ETH price can be seen in the weekly time frame. It must be noted that the price has come down through the major $4,000 support level, but that $3,700 appears to be holding thus far.
If this crash is to continue, it can be observed that there is a lot of strong support at $2,800. This is rather a long way down. In fact, it is 43% down from the all-time high. However, given that the last big reversal totalled a pretty massive 66%, this is certainly not beyond the realms of possibility.
The big weekly moving averages are also down in this vicinity, so yet another reason the price could get down there.
At the bottom of the chart, the weekly Stochastic RSI indicators are rapidly heading down to their base limits. However, it would probably take at least another couple of weeks before they bottomed and started angling back up again, signalling upside price momentum.
The weekly chart for the ETH/BTC pair tells quite a story. A 143% rally in favour of $ETH did wonders for the confidence of investors, some of whom perhaps bought the Spot Ethereum ETFs. However, even such a big rally only succeeded in taking the ETH/BTC ratio as far as the descending trendline. Here it was rejected once again, just as has constantly occurred since December 2021.
This is not a good look for $ETH. If the support at 0.03 BTC gives way, look out below. This could also be a sign that the altcoin bull market might be over. The Stochastic RSI indicators are heading down, but they are still some way from the bottom. Unless a very bullish white swan hits the market, the $ETH price is likely to continue to lose ground against $BTC.
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