The Ethereum price has been decreasing since reaching a high of ₿0.0284 on Feb. 18. While there have been several attempts at retracing, they have all ultimately been unsuccessful. At the time of writing, the price was approaching two critical support areas which could eventually be successful in initiating an upward move.
Full-time trader @CryptoMichNL tweeted an Ethereum chart, stating that he is seeing a number of relief bounces. However, until the price reclaims a major support area at ₿0.022, he believes the price movement is bearish and is expecting the price to go lower, possibly towards ₿0.017.
On the $BTC pair, we're seeing some relief bounces.
However, nothing special, if it's up to me.
We've lost a substantial level around 0.022 satoshis. Reclaim that and I'll become bullish.
If we remain below -> I'm expecting 0.0174-0.0178 and 0.0193 for tests. pic.twitter.com/s9x8uB3v7F
— Michaël van de Poppe (@CryptoMichNL) March 29, 2020
Let’s take a closer look at the ETH price and determine if it will decrease and reach the support levels outlined above.
The Ethereum price has been following a descending support line since Feb. 20. The price has validated it numerous times, most recently on March 26 when it initiated a slight bounce that is still ongoing.
However, it does not look as if the upward move will continue. The price has reached the 200-day moving average (MA), which is expected to provide resistance. ETH has decreased slightly since reaching the MA.
There are two support areas, found at ₿0.0198 and ₿0.0186. The price is expected to decrease until it reaches at least one of them. The ₿0.0186 area will coincide with the descending support line on April 5, making it a possible date in which the support area will be reached.
Similarly, the ETH/USD pair shows weakness, even though the price action is quite different. The price decreased rapidly from March 11-13, and has thrice unsuccessfully attempted to retrace since.
The main resistance is provided by the 0.236 Fib level at $140, above which the price has been trying to break out since reaching a bottom on March 13. However, it has generated several long upper wicks and has shown considerable weakness since.
The main support area is found at $110, where the downward move of March 11-13 ended. The price is expected to reach this area, before possibly making another attempt at breaking out. The most likely movement remains a consolidation between these two levels.
To conclude, the Ethereum price has made several attempts at initiating upward moves after the rapid decrease in the beginning of March. However, they have all ultimately been unsuccessful. In the near future, the price is expected to decrease toward the support areas outlined, before possibly making another attempt at moving upward.