Ethereum Breaking Down? Major Support Broken - Next Level?
Hello traders, here is my analysis for ETHUSD.
- If you read my post yesterday, I mentioned that today was a very important day for the markets being as the CPI data was scheduled to be released today.
- This morning we got that data... it was not good news for the markets.
- Basically inflation increased and was worse than expected.
BTC held up very well considering the massive sell off in the stock market.
- However ETH did not fare so well.
- As you can see ETH had a large sell off today, breaking below the major support level at $1,700.
**The reason that this level is significant is because it is a major support level last hit in 2021.
- This is not a surprise, ETH has been looking weak for several weeks now compared to most other top 20 cryptos.
Here are the Levels and Signals to watch for...
What's next for ETH?
1) I do not officially consider this a breakdown until price CONFIRMS below the $1,700 major support level.
2) If price confirms below, the breakdown is official and ETH will most likely continue lower down to the next support at $1,550.
3) If price does not confirm below and instead breaks back above the $1,700 support level, the Major support level is still intact.
Note** We are heading into a weekend. Most likely volume will be light however be prepared for Monday when the stock market re-opens.
- Will the stock market continue to sell off? Or will it stabilize eventually giving us a relief rally which will give BTC the chance to finally breakout?
Thanks everyone and best of luck trading!
- If you read my post yesterday, I mentioned that today was a very important day for the markets being as the CPI data was scheduled to be released today.
- This morning we got that data... it was not good news for the markets.
- Basically inflation increased and was worse than expected.
BTC held up very well considering the massive sell off in the stock market.
- However ETH did not fare so well.
- As you can see ETH had a large sell off today, breaking below the major support level at $1,700.
**The reason that this level is significant is because it is a major support level last hit in 2021.
- This is not a surprise, ETH has been looking weak for several weeks now compared to most other top 20 cryptos.
Here are the Levels and Signals to watch for...
What's next for ETH?
1) I do not officially consider this a breakdown until price CONFIRMS below the $1,700 major support level.
2) If price confirms below, the breakdown is official and ETH will most likely continue lower down to the next support at $1,550.
3) If price does not confirm below and instead breaks back above the $1,700 support level, the Major support level is still intact.
Note** We are heading into a weekend. Most likely volume will be light however be prepared for Monday when the stock market re-opens.
- Will the stock market continue to sell off? Or will it stabilize eventually giving us a relief rally which will give BTC the chance to finally breakout?
Thanks everyone and best of luck trading!