COIN UPDATE

FULL Altcoin Update: ETH (Ethereum)

Will $2,800 Support Hold?

The overall crypto market was shaken yesterday by heavy selling. BTC, and most major Altcoins, seem to be catching that fall really well but this does not guarantee that they are out of the woods already.

From our last update of this coin 3 weeks ago, ETH continued to ascend until it met a formidable resistance around the $4,000 area (as previously identified). Like most of its brothers also, it became a victim of the September 7 "Bitcoin Day" selling, but bounced nicely from the $3,000 mark (identified previously as a support area as well). In the days that followed, it seemed to be gunning for another retest of the $4,000 area but did not even reach near it, and instead formed a lower high at the $3,600 mark.

ETH has broken its 50 and 100EMA, but received favorable buying interest from the $2800 area (previously identified as well) - it's now currently pushing above the $3,000 mark, forming a hammer candlestick. This candlestick is usually a sign of reversal (bullish in this case). However, the day has not ended (anything can still happen) so we cannot be sure until it actually closes as such — and even if it closes as such, there is no guarantee that the selling will not continue tomorrow or in the next days. If your bias is long, pray that the $2800 support will hold, else, refer to below.

Areas of possible support:

$2,800 to $3,000

100EMA

$2,600

200EMA

$2,400

Areas of possible resistance:

50EMA

$3,300

$3,600

$4,000

Scenarios? It's 50/50 really. Selling volume was above average yesterday and that red candlestick is long - the hammer might only be temporary, or only for this day for all we know (or not). We are cautious of momentum because it's hard to fight momentum, and it's currently downhill for the Crypto market as a whole. We don't think it's a good idea to trade for now, and would prefer to see the price action "stabilize" first (see short candles within the $2,800 to $3,000 zone preferably). Or, ETH could retest $3,300 (or $3,600) in the next days then get rejected and finds support in $2,800 again. Or, it could just smash $3,300 and $3600 and retest $4,000.