Given the overwhelming market correction, Ethereum price exceeded the $225 support zone and remained lower afterward. As such, $225 has become a new support zone. The graph of ETH shows the retest, which is generally a negative sign for ETH holders.
The following scenarios should be considered:
The support zone has been able to withstand the pressure of traders. A new support zone at $175 is being set up.
Another test of support level.
The least possible scenario suggests deep falling to $125 avoiding potential support zone at $175.
From the technical viewpoint, the first scenario is most likely to take place. The second scenario is possible only if the market receives some positive impetus. Fundamentally, ETH’s price fall positively affects the technical side of Ethereum ecosystem: as the price of gas decreases, many contracts might be executed at considerably lower price. At the same time, the token values of many companies that went on ICO using Ethereum Blockchain are pegged to its base currency ETH, so that the decrease in price directly affects the capitalization of these companies.