Ethereum, the name synonymous with Dapps, has fallen by about 12% over the past week. There is an increase in the flow of volume of about 20% in the last 24 hours which may be due to the strong selling at the top of each rally but the bulls persistent buying in the dips. Ethe’s market cap is currently around $250 bn which is 1% down over the day. This week was hard for Ethereum but future funding rates indicate that retail traders have strong faith in the asset.
At the time of writing, ETH was trading at $2,075.
ETH has been trading in the downtrend over the past six weeks by forming a ‘Lower Top Lower Bottom’ pattern making the low of $1.763. However, the asset has taken support around the key level of $1,750 (Horizontal Trendline, 200 Week Moving Average, 127% Fibonacci Retracement Level). The lower longer shadow around the support indicates that the bulls are buying the dip. If the bulls can defend the support successfully, then we can expect a relief rally up to $2,400. Currently, ETH is facing strong resistance at around $2,150. A break or close below $1,700 will lead to further downfall to $1,500 levels.
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