In the past seven days, Ethereum (ETH) has seen with a strong gain above the resistance levels of $165 and $170 over USD. Besides, the cryptocurrency traded near $180 region and even surpassed the resistance level of $175.
On the other hand, the fortune of ETH is not always favorable. The price of the crypto faced a selling interest close to the resistance level of $178 to $180. So, many were not surprised why a high started to form close to $179 zone, while the price began a strong corrective decrease.
Will History Recur Itself?
Back in late November 2019, the second-largest cryptocurrency asset by market capitalization dropped below $160 per Ethereum. The said drop lost closely 10% of its value.
On November 22, 2019, Ethereum was trading only for $158.86, making it the lowest trade since April 2019. During the first weeks of November, ETH was trading for $190, following its recovery from above $160 zone in late October. After that, the crypto asset has seen with a steady decline, which shedded at $20.
The decline was despite some of the positive news about Ethereum last November 2019. not only that, ETH has not been overcome the bear market effects during that time.
So, with the current $160 drop, people across the crypto space are worried whether or not Ethereum could trade below $160 in the case for further decline.
Can Bulls Save The Plunge of Ethereum?
After settling below the resistance level of $170, Ethereum heads its way to more losses where its price broke the support level of $165. So, bulls were worried about the current higher correction while a low was formed near the region of $162.
Furthermore, the initial resistance of Ethereum is close to the $166 zone. Based on the recent decline between $179 high and $162 low, the Fib retracement level of 23.6% is near the $165 region.
As for the first resistance level, the value is near the $168 region. When it comes to the main resistance, the value is near the $170 region following the recent decline’s 50% FIB retracement level between $179 high and $162 low.
With the above analysis, the crypto asset is required to climb back towards the resistance levels of $168 and $170. That way, ETC could bring back its upward move above the $180 and $185 levels.
However, several keys support that is close to the $162 and $158 regions. In the case that Ethereum cannot make retaining above the support level of $158, then a higher downside consolidation is possible.
It is also good to note that the main support is close to the $152 zone. As a result, the cryptocurrency asset will likely end up being bearish. Other than that, there’s a huge possibility that it will decline close to the $140 level in the near term.
In the coming days, the efforts of the bulls are expected to double to ensure that the crypto asset will improve its performance in the crypto space.