Ethereum is down 20% on a daily basis, following Bitcoin’s lead.
The downside is the path of least resistance.
ETH/USD is trading at $227 at press time. The coin broke free from its narrow range amid global cryptocurrency collapse. Ethereum has lost nearly 20% of its value in recent 24 hours and touched $208, the lowest level since September 2017. Ethereum’s capitalization is registered at $23.3B, while an average daily trading volume is set at $2.73B from $1.9B the day before.
Ethereum’s technical picture
Ethereum is influenced by Bitcoin’s momentum, with the downside intensified by technical and speculative factors. The coin broke below the critical support level at $271 (short-term upside trendline), and absorbed stop-losses located below this level.
Basically, there is little in terms of support levels below the current price, which makes it the path of least resistance. Pivot Point one month Support 1 located at $210 may slow down the collapse; however, the recovery is only possible if the boarder crypto market shakes off the bearish sentiments. On the upside, ETH/USD needs to return above $250 (last month low) for a chance to extend the recovery towards the broken trendline at $270.
ETH/USD, 4-hour chart