Ethereum price drops like a rock on losing crucial support, why correction is unstoppable to $900
The cryptocurrency market is in bloodshed with assets posting massive losses over the last 24 hours. Ethereum is down a whopping 21% amid continuing declines while Bitcoin is trading sub $30,000 and could drop to $25,000 as predicted on Thursday.
Over $165 billion of the crypto market value has been wiped off as investors panic-sell in a bid to take profits. Meanwhile, the total market capitalization holds at $850 billion after dropping from $1.015 trillion in less than 24 hours.
Ethereum is trading at $1,130 after the cryptocurrency lost the ascending parallel channel support as discussed on Thursday. Other tentative support levels at the 50 Simple Moving Average and the 100 SMA on the 4-hour chart did little to stop the losses.
For now, the least resistance path is downwards, especially with the Relative Strength Index heading fast toward the oversold area. The trend indicator highlights a bearish divergence, which may have validated the breakdown.
ETH/USD 4-hour chart
Support at $1,000 is expected to help shake off the selling pressure in the market, and perhaps function as a stepping stone for Ethereum to resume the uptrend. However, if declines overshoot this zone, Ether is likely to extend the bearish leg to the 200 SMA before revisiting the primary anchor at $900.
Ethereum intraday levels
Spot rate: $1,130
Relative change: 13
Percentage change: 1.2%
Trend: Short term bullish
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