With Link Removed, as Ethereum price failed to hold ground above the $320 important supporting mark, the pair ETH/USD clearly would be heading diving underwater and trade below the $300 mark. The Link Removed was initiated with the news coming out the China has officially banned ICOs. Leading virtual currencies paired with USD like Bitcoin, Bitcoin Cash and so on were massacred yesterday after the news came out. After flowing below $275 (specifically $274.01) there could a minor recovery attempt happening.
Since the last declining wave from $319.34 to $274.01, it is trading close to 23.6% Fib retracement level. For the moment that are two major bearish resistance lines made close and above the $320 mark on the hourly chart of the pair ETH/USD. That is indicating buyers will find much struggle to pass the $320 mark in any near term. Link Removed
It looks like you're sharing some market analysis regarding Ethereum (ETH) and its current trading situation, possibly related to news about China's ban on ICOs. Here’s a detailed breakdown of your analysis with some added insights:
Market Analysis of ETH/USD
Current Trend:
The price of Ethereum has failed to maintain support above the critical $320 level. This indicates a bearish sentiment in the market, suggesting that further declines in price are expected.
The recent drop to around $274.01 signifies a loss of $45.33 from the previous support level.
Impact of External News:
The news regarding China's ICO ban has had a significantly negative impact on the cryptocurrency market, contributing to the price drop in Ethereum as well as other leading cryptocurrencies like Bitcoin and Bitcoin Cash.
Technical Analysis:
Fib Retracement: After a decline from $319.34 to $274.01, the current price is attempting to approach the 23.6% Fibonacci retracement level. This level can often provide resistance for recovering prices.
Resistance Levels: There are two notable bearish resistance lines established above the $320 mark. This suggests that breaking above this level may require considerable bullish pressure, which seems lacking at the moment.
Potential Recovery:
While reaching below $275 could trigger a minor recovery attempt, significant barriers may prevent any sustainable upward movement. Thus, traders should exercise caution.
Market Sentiment:
In a bear market, the sentiment often leans towards selling pressure, with many traders preferring to cut losses. Observing market reactions to breaking key support or retracement levels will be crucial.
Conclusion
Given the current situation and technical indicators, it seems prudent for investors to remain vigilant and consider market sentiment before making any decisions. The attempts to recover from current lows might be short-lived if resistance levels hold strong. It may also be beneficial to monitor news developments, as they can strongly influence market movements in cryptocurrencies. If you would like to analyze specific patterns or need further insights regarding technical indicators, feel free to ask!
