As the price of Ethereum’s native digital currency, Ether (ETH), recently had record transaction rates, ETH’s price also showed increased volatility.
It reached a new high of $495 at the end of August, after which the price dropped by more than thirty percent to $308.
This breakout caused the general cryptcoin market to slide and the price of Bitcoin to plummet to $10,000.
Let’s take a look at the technical chart to see where the price of ETH, and therefore many other crypt coins, will go.
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Ether holds on to the $300 support level
Ether tried to continue the massive bullish routine with a new break above $440 during the previous weeks. However, as the chart shows, the breakout showed no strength, which triggered a massive sell-off around September 1st.
The crucial support level was found to be $360-380, which could not be maintained after multiple tests. This breakdown led to the next level of support with the price sliding from $360 to $300.
When a breakout occurs, the following resistance and support levels can be derived from the historical price action.
The chart shows these pivots, with $300 being a significant one, although $280 and $245 are also important levels to consider. The previous support level at $360-380 is now clearly defined as a resistance level, which must be broken for the upward momentum to resume.