After an incredibly strong rally which lasted 2 days the Ethereum price is now back down today. We wrote a very important article yesterday in which we noted how important it was for Ethereum to continue rising, as long as Ethereum’s price stays above $220, the reason being is that above $220 is trades above its falling trend channel. That is another way to say that it is bullish.
We also clearly emphasized yesterday that Ethereum should trade for at least 3 consecutive days above $220 in order to confirm its trend reversal from falling to rising. The chart in yesterday’s article illustrates our point.
Today is disappointing for Ethereum bulls because the price is about to close below $220. As seen on today’s price action (see below screen) Ethereum was not able to hold strong, and it fell to $200, with an intraday low at $195.
Going forward, what we are looking for is a rise again above $220. It is certainly not impossible, but we’ll have to see that Ethereum is able to climb back above that price level.
The downside still gives the same picture as said last week: Ethereum at $125 is the support level. As long as Ethereum remains above $125 there is not much reason to be concerned.
It will be very interesting to see what Ethereum’s price will do the coming hours and days.