After seeing its price double during a mind-boggling August, Ethereum lost $ 180 in a few days, a drop of more than 35%, should we be worried about that?
Technical Analysis – After seeing its price double during a mind-boggling August, Ethereum lost $ 180 in a matter of days, a drop of over 35%. Should we worry about it?
On September 1, Crypto Engine set its 2020 price record of the year reaching $ 490 before dropping rapidly to $ 310, during a descent as violent as its ascent.
After rain the good weather
While the correction that followed this record was sudden and abrupt, this type of correction remains normal in a bull market. All the cryptos have also recorded a difficult start to September, strongly correlated with the fall recorded by the US stock markets during this same period. For now, the trend remains medium term bullish for ETH.
If we look at the short-term behavior of ETH over the past week, we see that the price is in a bullish channel from its lows at $ 310. The price was recently thrown at $ 390 and, at the time of writing, ETH is trading at $ 372.
As long as the price remains above $ 360, the trend remains bullish in the short term . The next resistances are at $ 399 and $ 410.
A downward breakout of oblique support remains to be watched. The following brackets can be found at $ 360 and $ 310. A fall in the price to these levels would not yet call into question the medium-term uptrend.
An important price level to observe in the coming days is therefore the old ETH price record for 2019: the $ 360 zone . This level played a major supporting role throughout August. A maintenance of the price above this level is an important sign and would allow considering a further sharp rise in ETH.
It degasses on the network
The drop in the price of Ethereum will at least have made a few happy: the protocol users!
After hitting grotesque prices , Ethereum transaction fees have slipped dramatically, dropping nearly 75% from the September 2 highs. However, they are still 4 times more important than at the beginning of the summer and you will need today almost $ 1.60 to carry out a transaction on the network.