29
0
  • Bullish vs. Bearish - 25%
    25%
  • Probability - 75%
    75%

Ethereum closed below key $117 intra day support and ended up closing yesterday around the $113 mark. The broken support led to additional downside and Ethereum went down another ~8% to $105. This drawback led the crypto market drawdown and other coins, including Bitcoin, experienced losses.

The early signals of potential down move appeared early morning January 27th when Ethereum 4H closed below $117 support where it had bounced off multiple times in the last two weeks. At this time, Bitcoin did not yet break its support at $3500. We did report last week that we are much more likely to see downside than upside with $117 being the key point of focus.

ethereum leads crypto drawdownAs it stands right now, Ethereum has tapped the liquidity level around $105 and consolidation here makes most sense. A retest of $117 as resistance is a potential pattern to watch out for as we consolidate here as well.

However, the likelihood of retesting 2018 bottoms in the $85 range has just increased. Invalidation of this scenario would be possible if we start seeing reversal patterns here and break out and close above $117.

 

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