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Ethereum Price Analysis: ETH finds support at $2,400, further declines likely

Ethereum Price Analysis

TL;DR Breakdown

  • Ethereum price analysis highlights ETH price decline from $2,800 to $2,400.
  • Support at $2,400 could avoid further declines towards $2,000.
  • ETH emerging as an attractive investment as holders exit Bitcoin.

Despite Bitcoin holding its annual Bitcoin Conference in Miami over the weekend, the crypto market has once again failed to record positive price movements. In fact, the major crypto assets exchanged with weak momentum, with Ethereum registering a head and shoulder pattern on its 24-hour chart.

Ethereum Price Analysis: General price overview

ETH has scaled a few critical levels from last week’s support line at around $2,500. After a sluggish trading session over the weekend, the pioneer altcoin managed to hit levels above $2,700 yesterday. Despite the positive price movement, the bears were strong enough for the altcoin to force its way into pulling its price downwards.

At the time of writing, bearish calls have engulfed the market, with market pundits speculating a massive price dip is in the offing. One of the reasons the crypto market is currently red is Bitcoin’s dive from $36,000 to around $33,000. At present, Ethereum is exchanging hands at around $2,530 after finding support at $2,400. The immediate upswing could have surged higher if it were not for the limited aspect of the 100 Simple Moving Average. This is to say that any short-term price recoveries emanating from the $2,400 support line could encounter delays.

Ethereum price movement in the past 24 hours

Ethereum Price Analysis: ETH finds support at $2,400, further declines likely 1
Source: TradingView

Ethereum is exchanging hands at around $2,500 while registering negative price movements at the time of writing. As aforementioned above, the $2,400 support level is expected to offer Ethereum the much-needed cushion from the ongoing bearish trend. On looking at the Moving Average Convergence Divergence (MACD) indicator, it paints a bearish picture. At present, the MACD indicator is hovering under the 0.00 mean line, a fact that cannot be overlooked. Additionally, the trend momentum indicator has also moved in the negative region, adding validation to the bearish narrative.

Like most crypto assets in the market currently, Ethereum’s 24-hour chart signals a technical formation that appears like a down surge continuation rather than a reversal pattern. Be it as it may, if Ethereum closes the day below the $2,000 mark, the crypto coin will be in for further price declines. However, a decisive close above the $2,800 mark would invalidate the bearish narrative.

Ethereum 4-hour chart

Ethereum Price Analysis: ETH finds support at $2,400, further declines likely 2
Source: TradingView

According to the 4-hour chart, Ethereum’s Relative Strength Index took a dip towards the oversold region despite finding leverage at around 44. As it moves sideways, bears can push the price of Ethereum further downwards. However, the bulls also can increase their entries, as investors take advantage of the low prices.

It is worth noting that a daily close above the 100 Simple Moving Average is required for proper recovery to take place. Ethereum is likely to face some sought of price recovery delay at the 50 Simple Moving Average level, which currently stands at around $2,700. Ethereum has the tough task of getting out of the woods, a thing that will only be possible if it settles above the $3,000 mark.

Conclusion

The sluggish trading session witnessed in the crypto market is particularly interesting as gold is emerging as a more reliable asset than Bitcoin. Over the past 2 months, more and more investors are turning their backs on crypto and going back to traditional assets, such as gold. As this trend continues to gain momentum, the market is likely to witness an increase in divergence between the 2 assets.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Robert Githinji

Robert Githinji

Robert is a crypto and blockchain pundit with a vast experience in deciphering crypto charts and deriving ideas. He has made the rounds of major crypto news outlets and joins the upbeat at Cryptopolitan team. Apart from dabbling with cryptomarket trends, he is an avid footballer and a coffee lover.

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