ETHUSD just experienced a 10% pullback from yesterday’s high.
Such retracements in crypto aren’t all that rare.
I was also anticipating this drop to the $1,950 region per my comments yesterday on Twitter.
In fact, the lower boundary to my support area for Ethereum was $1,933.
Today’s low is $1,930.
But the big question is, has Ethereum bottomed?
While there are no guarantees, the $1,950 region is incredibly strong.
Notice how the area between $1,930 and $1,950 is weekly support.
However, Wednesday’s price action isn’t overly convincing.
After an initial 4% bounce, ETHUSD stalled out and even revisited the $1,940 area again.
And although the market is staying above $1,930 for now, I haven’t seen the buying pressure one would expect after a 10% pullback from all-time highs.
Furthermore, both BTC and ETH are holding below critical resistance levels.
For BTCUSD, it’s the $56,800 level.
The market needs to get back above that area on a 4-hour closing basis to expose higher levels.
And for ETHUSD, the pair needs to get above $2,010 on the 4-hour chart to regain its footing.
Until that happens, the crypto markets look vulnerable.
If $1,930 support for ETHUSD fails, I’ll be keeping a close eye on the $1,850 support area.
I’ll also be eyeing $54,000 for BTCUSD.