Ethereum price prediction: ETH to retest $2000 support
Summary of the situation
The price of Ethereum is expected to drop below $2100.
The next tranche is at $2,150 and even lower at $2,000.
ETH will encounter resistance at $2200.
After climbing to the $2500s, the price of Ethereum failed to continue its upward movement and has since stagnated, falling to $2300. However, today the price has seen a strong downward movement and has dropped below the $2200 level where it is currently trading.
The broader crypto-currency market saw a net upward movement last week, with most major crypto-currencies posting gains throughout the period. The top performers were Dogecoin and VeChain, which grew by 303.63% and 50.24%, respectively. Meanwhile, Binance Coin and Tether posted record gains of 0.63% and 1.83%, respectively.
Technical indicators for ETH/USDT
According to the technical indicators, the MACD showed a bearish reversal two days ago and has remained bearish since. Bearish momentum has been increasing rapidly recently, as evidenced by the increasing size of the dark red histogram. As both EMAs move down, EMA 12 splits from EMA 26, showing increasing selling pressure at the time of writing.
The RSI has been hovering in the neutral zone for the past two days, showing strong bearish momentum. The indicator is currently below 36.00 and moving steadily downwards. However, if the indicator moves lower, the RSI will quickly fall into oversold territory, which is a buy signal and makes further downward movement unlikely.
The Bollinger Bands are currently wide and showing a new extension as price is currently trading near the bottom of the indicator. The widening of the band indicates increased volatility in the Ethereum price in the short term. However, if price consolidates below the centerline of the bands, the bands will be tilted downward in the coming days.
Overall, the technical analysis on the 4-hour chart gives a sell signal, with 14 of the 26 major technical indicators supporting a bearish move. On the other hand, only three indicators give a buy signal, indicating a rising correction. Meanwhile, nine indicators continue to lag, supporting neither side of the market.
The 24-hour technical analysis does not share this opinion and gives a buy signal, as 12 of the 26 indicators point upwards, while only five indicators point to a downward correction. Nine indicators remain neutral and give no signal at the time of writing.
What can we expect from the Ethereum price?
Although medium-term technical analysis points to an uptrend, the recent downtrend has put a lot of pressure on the price of Ethereum. Traders should therefore expect the price to fall to a key support level of $2000 before stabilizing.
Technical analysis shows that a new downtrend is unlikely, and that the Ethereum price will recover once it gains a foothold at these levels. Conversely, if the price drops below $2000, the next support is at $1800.
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