Ethereum (ETH) Tests Key Support Level, Is $170 USD On The Horizon?

The cryptocurrency market is dipping to 2019 levels following the bloodbath across global assets as the Corona Virus epidemic continues to bite in to bulls profits. Ethereum (ETH), the second largest crypto, is on course to hit the critical support levels at $180 USD after dipping over 8% over the past 24 hours. Is this a crucial retest or yet another manipulation move by whales in the market?

ETH/USD dips to $190 USD level as futures volume hits record levels

ETH currently changes hands at $192.18 USD, representing a short gain from intraday lows of $191.32 USD. Over the past 48 hours the Ether market has sharply dipped by 20%, from highs of $231 USD to current prices, threatening a possible continuation of the selloff to yearly lows. A clear pattern of rising volumes and heavy drip in value of the crypto is raising fears of a continued bear run.

Ethereum (ETH) Tests Key Support Level, Is $170 USD On The Horizon? — Image: Skew Markets

Future contracts on Ethereum have also experienced a huge boost over the past few days as bearish sentiments flood the market. Over the past day, Huobi ranked as the top exchange trading ETH futures, recording over $2 billion in trading volume. OKEx, BitMEX and Binance take up the top four positions recording $1.433 B, $881 million and $834 million respectively.

Make or break for ETH?

The overwhelming dip in ETH price is raising eyebrows as investors continue to sell off their assets for alternative investments. According to some of the analysts the ongoing selloff in the crypto may be a plot by whales who fire up prices and take up profit before leading to a drastic downtrend.

Dear noobs,
Bitcoin is NOT naturally going down. It is being pushed down via whales placing spoofy sell orders on exchanges to make noobs and risk managers sell to “buy back lower”. They are stealing your bags and will make you buy back at a higher price.

Retweet this.

— XC (@runtheirstops) March 9, 2020

With the dark cloud hanging over ETH/USD pair, can the bulls regain the market back to $200 USD or is this yet another drip of value?

Looking at the charts, the price of ETH looks set to slip further towards the key support levels at $170 USD, if bears breach the all-important $190 USD, which has been evasive so far. The price delicately balances on the lower 20-day Bollinger Band (BB) signaling a possible drop further, with a breach past middle BB (which provides near term resistance), the only hope for a continued 2020 bullish run.

Furthermore the daily relative index currently oscillates in the selling zone at 39.23 with a bearish projection signaling a possible test of the $170 region.