The pseudonymous trader known as Rekt Capital tells his 327,000 Twitter followers that the leading smart contract platform could close as low as $1,550 and still recover.
“ETH is now dipping in an effort to successfully retest this orange area as support.
Hold orange as support & ETH will be able to move towards $2250 (black).
Downside wicking to ~$1550 would be fine as long as ETH weekly closes inside this current orange area.”
Ethereum is changing hands for $1,694 at time of writing, a 9.1% dip in the last 24 hours.
The analyst then says that the top crypto asset by market cap has lost its support at the 200-week moving average due to the latest crypto market downturn, but that recovery is possible as a relief bounce could flip that area into new resistance.
“After successfully [retesting] the 200-week moving average on weak buy-side volume, BTC has now broken down from this support.
Weekly Close below the 200-week moving average will confirm the breakdown.
If BTC indeed confirms a breakdown from the 200-week moving average…
Then it is possible that a relief bounce into the 200-week moving average to flip it into new resistance could take place. The 200-week MA represents the price point of ~$23200.”
Bitcoin is trading for $21,345 at time of writing, an 8.8% drop in the last day.
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