Small cap cryptocurrencies outright crashed today following the US trading session and Ethereum also fell by more than 15%, breaching the prior correction low and spiking below $200, triggering a string of stop orders. Compared to the previous market rout, Bitcoin held up well, testing just the short-term support at $2250.
ETH saw huge volume during the spike, and together with the divergences that the majors experienced lately, there is a good chance that a tradable bottom is in. While we don’t suggest going all-in on the current setup, smaller long positions could be opened, considering the long-term picture, which shows that the overbought momentum readings have been cleared. The initial targets for the move in ETH are $230 and $250, while a move below $185 would be bearish.
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