{"id":21618,"date":"2018-08-14T22:10:11","date_gmt":"2018-08-14T22:10:11","guid":{"rendered":"http:\/\/ci027cfe7020032697"},"modified":"2025-01-28T16:22:34","modified_gmt":"2025-01-28T16:22:34","slug":"ether-price-analysis-historic-support-breaks-leads-signs-capitulation","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/markets\/ether-price-analysis-historic-support-breaks-leads-signs-capitulation","title":{"rendered":"Ether Price Analysis: Historic Support Breaks, Leads to Signs of Capitulation"},"content":{"rendered":"
<\/div>
<\/figure>\n

In two short weeks, ETHUSD has devalued by 50% of its market value. With little to no relief for the underwater bulls, ether seems to be accelerating downward as buyer confidence is lacking and showing signs of capitulation. The entire crypto market, as a whole, is showing signs of capitulation as many alts have seen similar devaluations in shorter periods of time than ETHUSD. Similar to many other coins, ether is penetrating long-held support with very little ease:<\/p>\n

<\/figure>\n

Figure 1: ETH-USD, 1-Day Candles, Macro Trend<\/p>\n

As a general idea of just how extended the market is, take a look at the 50 EMA (the blue curve) in the image above. The 50 EMA acts as a fast-acting equilibrium curve that shows the price relative to its price history<\/a>. Currently, the market is highly separated from its equilibrium. Often, when this happens, the market goes through a capitulation phase that has a very strong reaction causing both short profit taking and bottom-callers to shove the price strongly back in the direction it came from.<\/p>\n

The 127% Fib extension of the most recent bullish rally on ETHUSD reveals a likely target for this capitulation. Historically, this price level (the $230 area) has also served as a key area for buyer interest to step in:<\/p>\n

<\/figure>\n

Figure 2: ETH-USD, Daily Candles, 127% Fib Extension<\/p>\n

Our current trend is showing an expansion of volume and price spread \u2014 very similar to the two v-bottom reversals shown above. Right now, it\u2019s nearly impossible to tell where the true bottom will be, but I would find it highly unlikely to not see a snapback from this strong round of selling across the crypto market.<\/p>\n

Something else that\u2019s noteworthy about this move is the recent bear flag ether broke out of:<\/p>\n

<\/figure>\n

Figure 3: ETH-USD, Daily Candles, Bear Flag Target<\/p>\n

Currently, we are sitting at the very price target of the bear flag shown above. While that is not entirely a bullish signal, it doesn\u2019t give a bit of hope toward the argument of a potential V-bottom reversal. If we continue to drop without any relief for the bulls, it is only a matter of time before the market overextends and rebounds from the so-called \u201cweak hands\u201d capitulating.<\/p>\n

Summary:<\/h3>\n
    \n
  1. ETHUSD devalued by 50% in two weeks.<\/li>\n
  2. It is currently seeing expanding volume and expanding price spread as it continues to accelerate its descent.<\/li>\n
  3. The price target of the bear flag it broke south of has already been realized and there was little demand stepping in as it cruised straight through historically strong support.<\/li>\n
  4. A likely bottom, should the market continue to capitulate, lies on the 127% fib extension \u2014 the $230 area.<\/li>\n<\/ol>\n

    Trading and investing in digital assets like bitcoin and ether is highly speculative and comes with many risks. This analysis is for informational purposes and should not be considered investment advice. Statements and financial information on Bitcoin Magazine and BTC Media related sites do not necessarily reflect the opinion of BTC Media and should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

    In two short weeks, ETHUSD was devalued by 50% of its market value. With little to no relief for the underwater bulls, ether seems to be accelerating downward as buyer confidence is lacking and showing signs of capitulation. The entire crypto market, as a whole, is showing signs of capitulation as many alts have seen similar devaluations in shorter periods of time than ETHUSD. Similar to many other coins, ether is penetrating long-held support with very little ease:<\/p>\n","protected":false},"author":3439,"featured_media":21620,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[2037,621,2069],"class_list":["post-21618","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-ether","tag-ethereum","tag-price-analysis"],"author_data":{"id":3439,"name":"Bitcoin Schmitcoin","nicename":"bitcoin-schmitcoin","avatar_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/12\/cropped-bitcoin-schmitcoin-promo-image-1-2-96x96.png"},"featured_image_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/bitcoin-ether-price-analysis-bitcoin-still-going-strong-while-ether-wearies.jpg","_links":{"self":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/21618","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/users\/3439"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/comments?post=21618"}],"version-history":[{"count":0,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/21618\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media\/21620"}],"wp:attachment":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media?parent=21618"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/categories?post=21618"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/tags?post=21618"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}