Ethereum (ETHUSD) continues to take no prisoners

Yesterday Ethereum (ETHUSD) fell to as low as 1553.58. That was a drop of almost 25% from the weekend high above 2000. The move lower yesterday was clearly correctional and also unsurprising in some respects given just how far this had reached lately. However, as with Bitcoin is was also a very clear indication that price discovery is very much an issue at times. The range yesterday was even more extreme than the more usual $200 to $250 seen most days, with more than $400 covering the action. Today looks like being no less extreme either. Following the low point reached yesterday, Ether managed to rebound back above 1800 again. Earlier today it topped out at 1802.60, but it has just now fallen back close to the low seen yesterday. In fact, it has almost exactly matched, but slightly exceeded that level when falling to 1553.10 a short while. The drop below the 21 day moving average yesterday was the first indication of more downside to come. It was also noted here previously that a correction was going to come and when it did, it would be savage. A break below 1500 from here would not look good from a technical perspective either and it will need to recover levels above 1800 if it is to snap this bout of weakness. Right now the downside looks more vulnerable though. ETHUSD is currently trading at 1597.50