Ethereum crashed by 94% in 2018 — Will history repeat with ETH price bottoming at $375?

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Ethereum crashed by 94% in 2018 — Will history repeat with ETH price bottoming at $375?

ETH’s latest plunge could bring more pain despite expectations that $1,200 should hold.

Ethereum crashed by 94% in 2018 — Will history repeat with ETH price bottoming at $375?

Ethereum’s native token Ether (ETH) is showing signs of bottoming out as ETH price bounced off a key support zone. Notably, ETH price is now holding above the key support level of the 200-week simple moving average (SMA) near $1,196. 

The 200-week SMA support seems purely psychological, partly due to its ability to serve as bottom levels in the previous Bitcoin bear markets.

Independent market analyst “Bluntz” argues that the curvy level would also serve as a strong price floor for Ether where accumulation is likely. 

He notes:

Ether price targets

ETH’s price has been testing the 0.786 Fib line (near $1,057) as its interim support. This price level serves is a part of the Fibonacci retracement graph, drawn from the $1,323-swing high to the $82-swing low, as shown in the chart below.

ETH/USD weekly price chart featuring Fibonacci support/resistance levels. Source: TradingView

A 2018-like 94% price decline would risk bringing ETH to the 0.236 Fib line near $375, down 70% from June 1’s price.

Conversely, if Ether indeed bottoms out near its 200-week SMA, its path of least resistance appears to be toward $2,000. An extended upside retracement above $2,000 would have the Ethereum token test $3,500 as its next bull target. 

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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