Key Highlights
- Ethereum fell through today’s $590.1 support level against the U.S Dollar this morning, following Monday’s 18.68% fall to a closing $697.95.
- A major bearish trend continues with the next major support level for ETH/USD sitting at $511.33.
- At the time of writing, ETH/USD is sitting close to its intraday low $555.56 at $568.82, with further declines through the day likely.
Ethereum Price Support
Following a closing $697.95 on Monday, 5th February, it’s been downhill all the way for ETH/USD, with today’s first support level of $590.1 falling away as sentiment towards the cryptomarket continued to deteriorate in the early part of the day, with ETH/USD hitting a swing low $555.56 in the early hours.
Since touching an intraday low, ETH/USD has found a little upside, with the pair trading within tight ranges through the middle part of the morning.
The trend continues to look bearish for ETH/USD, with a fall through to the next support level of $511.33 likely to lead to more significant losses through the day.
There is some wiggle room, however, with ETH/USD first resistance level sitting at $802.15, though a 23.6% FIB retracement of $713.31 will likely stifle any moves towards $802.15.
A move back through $713.31 later in the day will likely have plenty of sellers, with ETH/USD unlikely to find too much support at $700 levels this afternoon.
With the negative market sentiment unlikely to abate through the early part of the week, any upside through the day will likely be short-lived barring a shift in sentiment that would need to be driven by a shift in regulatory chatter. We don’t expect the PBoC or other regulators to step in to ease the cryptomarket panic, which should maintain the bearish outlook for them ahead.
Looking at the Technical Indicators
- Major Support Level: $511.33
- Major Resistance Level: $802.15
- Fib 23.6% Retracement Level: $713.31
- Fib 38% Retracement Level: $810.9
- Fib 62% Retracement Level: $968.66
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