Ethereum tumbled by 17.45% on Monday, following last week’s 16.14% slide, to end the day at $145.21.
Bearish through the day, Ethereum fell from a start of a day intraday high $175.92 to a late in the day intraday low and new swing lo $142, the reversal seeing Ethereum slide through the day’s major support levels by mid-morning, with a lack of support leading to further declines through the 2nd half of the day.
$200 had been the line in the sand for Ethereum as had $6,000 for Bitcoin, with the floodgates opening once the key support levels had been breached, Ethereum having fallen through to sub-$200 levels in late last week’s Bitcoin Cash hard fork induced sell-off.
There were no positives for the crypto bulls to take away from Monday’s sell-off, with the new swing lo $142 reaffirming the extended bearish trend formed at early May’s swing hi $828.97, Ethereum now some way off the 23.6% FIB Retracement Level of $304 and, of greater significance, the 38.2% FIB Retracement Level of $404 that needs to be hit to begin the formation of a bearish trend reversal.
Having already given up its coveted number 2 ranking to Ripple’s XRP, a more resilient Ripple XRP on Monday saw Ethereum fall further behind, with the market cap gap widening to just shy of $4bn, the only good news is that Bitcoin Cash is some way off at number 4, with a $9.5bn gap in market cap.
At the time of writing, Ethereum was down 10.51% to $129.95, with a bullish start to the day hitting reverse, Ethereum falling from an early morning high $149.5 to a late morning low $121.5, the reversal seeing Ethereum slide through the day’s first major support level at $132.83 to come within range of the second major support level at $120.46 before finding support.
For the day ahead, a move back through the first major support level at $132.83 would bring $140 levels into play before any pullback, though we can expect Ethereum to face plenty of resistance on the way through the day’s first major support level to pin Ethereum back from a break out to $140 levels barring a material shift in sentiment across the broader market.
Failure to move back through the day’s first major support level at $132.83 will likely pin Ethereum back to $120 levels through the day, with the day’s second major support level at $120.46 in play should sentiment fail to improve through the second half of the day.
It’s particularly bearish, the negative bias bringing sub-$120 levels into play mid-week.