Flash Update: Ethereum Spikes Below $200: A Final Stop Raid?

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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Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.