Ethereum rebounds from its support after suffering a 30% drop. Let's take a look at the future prospects for ETH.
Ethereum (ETH) price situation
After peaking at $4,090, Ethereum price quickly reached its support at $3,300. Unfortunately, after two rebound attempts, ETH finally broke this price level from below. Thus, the cryptocurrency quickly moved towards $2,900. Since then, Ethereum appears to be consolidating in a range above this latest price level.
At the time of writing this article, one Ether is worth $2,984. It is positioned below the value zone set at $3,400. Likewise, Ethereum price is below its 50-day moving average, which is now moving lower. Although the underlying structure remains bullish, this naturally calls into question its sustainability, at least in the short term. As for the oscillators, we can see that they display market dynamics which seem to be stabilizing, referring to a period of uncertainty.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Hypotheses for the price of Ethereum (ETH)
- If the price of Ethereum remains above $2,900, we could anticipate a return to $3,300. The next resistance to take into account, if the bullish movement continues, would be $3,700 or higher, the last high of ethereum. At this stage, this would represent an increase of more than +37%.
- If the price of Ethereum fails to stay above $2,900, we could envisage a return to around $2,700 or even $2,600. The next support to consider, if the bearish movement continues, would be in a price range around $2,300. At this point, that would represent a drop close to -22%.
Conclusion
Despite a significant decline since its peak, Ethereum is showing signs of stabilization. However, the presence below critical thresholds and an uncertain trend highlight the need for caution in the future evaluation of its course. Thus, it will be crucial to carefully observe the price reaction at different key levels to confirm or refute the current hypotheses. It is also important to remain vigilant against potential “fake outs” and “market squeezes” in each scenario. Finally, let us remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also evolve quickly depending on other more fundamental factors.
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