After marking a peak, Ethereum is under increasingly threatening selling pressure. Let's take a look at the future prospects for ETH.
Ethereum (ETH) price situation
After peaking at $3,950 following the approval of Ethereum spot ETFs, the price of Ethereum came under selling pressure which naturally pushed the price of the cryptocurrency down. This decline was fueled by the decline in Bitcoin, which took the entire crypto market with it. Thus, Ethereum is in a short-term downtrend. Nonetheless, it appears to have attracted buying interest as it reached $3,250, which allowed it to hold above $3,300, a price level highlighted in the June 12 analysis. This therefore leaves hope for a rebound to counter this selling force.
Ethereum now sits just below its 50-day moving average. This is not reassuring about the medium/long term structure of crypto. However, we can be reassured by the fact that it remains above its 200-day moving average. In terms of the dynamics of the Ethereum price, it is not surprising that it continues to fall, as evidenced by the oscillators and the price of Ethereum itself. While this is a timely signal in an uptrend, it can prove worrisome as this decline deepens.
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 Ethereum price holds above $3,250, we could anticipate a bullish recovery to $3,500 or even $3,800. The next resistance to consider would then be $4,000 – $4,100. If the bullish move continues, this could mark a new high at $4,500, opening the door to reaching Ethereum’s ATH. At that point, this would represent an increase of over 32%.
- If the Ethereum price fails to stay above $3,250, we could envisage a return to around $3,000. The next support to consider, if the bearish movement continues, would be in the price range between $2,900 and $2,800. Further down, we can note the support at $2,700. At this point, that would represent a drop of around 20%.
Conclusion
Ethereum is currently going through a declining phase influenced by the fall of the crypto market. Despite this selling pressure, key support made it possible to maintain a certain price level, giving hope for a potential rebound. However, the situation remains uncertain, as the bearish momentum of ETH is persistent, this could become worrying if this trend continues. 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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