Ethereum Nears Major Catastrophe, Holding On To Tiny Support

Ethereum nears a major catastrophe since it is now standing only on a single line of defense. If this support line gets crossed, the second-largest cryptocurrency could see the end so let’s read more about it in the upcoming ETH news.

The investors are watching Ethereum closely and they are seeing a testing phase of important support levels that would likely determine the future path of the coin. In the past 36 hours, Ethereum nears a massive disaster following the sell-off that saw its price drop to 50 percent. the smart contract platform went from trading at $195 to reach $90 in a matter of moments. This price level has not been seen since 2018.

The major price crash of Ethereum made the investors fear for their lives according to the crypto fear and greed index. It seems that the market participants are fearing that ETH could be breaking out in another downtrend direction of a multi-year symmetrical triangle that can be spotted on the 1-week charts. The technical formation shows a consolidation period nearing where the price of the asset is contained in two converging trend lines so by simply measuring the distance between the high and low of the pattern, the triangle shows an 84 percent target upon the breaking point.

As it can be seen on the charts, Ethereum seems to have reached a low trendline of the triangle and the downward could boost the trend from bullish to bearish and can even take Ethereum to $20.5. However, not all of the investors got scared of the price action. Some even purchased ETH by over 330,000 addresses reaching 6.9 million at an average price of $117. The buying pressure during the price drop of the coin allowed Ethereum to go back into the symmetrical triangle where it was consolidating a few years ago.

Another increase in demand for the current price levels could even boost ETH to get away from the lower trendline of the symmetrical triangle to another upper level. In the meantime, the weekly candlestick close below the lower trendline which could validate a disastrous scenario for ethereum that many are already anticipating. The major buying pressure during the recent price drop, helped Ethereum to move back into the triangle where it was consolidating in 2018.