- Ethereum price analysis highlights ETH’s chances of revisiting the $3,000 mark.
- With exhaustion in the bull’s camp, short-term technical indicators are turning bearish.
- A decisive close below the $2,000 mark could cancel all the bullish narratives.
- A powerful close above $3,000 would open the door for more uptrends.
Ethereum price is still in the woods as market participants respond to the relatively robust American inflation data made public this week and as competition rises. At the time of writing, Ethereum is exchanging hands at around $2,472, which is roughly 15 percent below this month’s highest level.
Ethereum Price Analysis: General price overview
Ethereum price movement lacks the volume to register a significant price rally at the time of writing, hence its current consolidating nature. However, the news of Bitcoin‘s acceptance by the El Salvado government could see the crypto coin and the general market rebound during the weekend.
As it has been the norm, Ethereum price action tends to follow Bitcoin’s price movement despite showing less volatility in its surges. For instance, when Bitcoin appreciated by 13 percent, Ethereum surged by only 13 percent. This indicates waning interest in the pioneer altcoin‘s projections.
Regardless, the ETH price currently rests comfortably above the 50 percent Fibo retracement level at $2,20. In the event, Ethereum declines towards this level, investors should expect a renewed bullish momentum. However, such a price decline could extend in some instances, leaving the crypto asset dropping towards the swing low of $2,270.
Ethereum price movement in the past 24 hours
According to the 24-hour chart, Ethereum appears to be struggling building on the $2,400 support line for upward price actions towards $3,000. This can be partially blamed on the confluence resistance formed by the 50 and 100 Simple Moving Average, which prohibits bulls from extending Ethereum’s price higher.
At present, a downward price movement appears to be the easier route for Ethereum despite its $2,400 support line. This trend is marking the crypto asset vulnerable to colossal losses. According to key technical indicators, Ethereum is in for a short bearish leg before turning bullish. For instance, the Relative Strength Index on the chart is currently in the negative region. As for the Moving Average Convergence Divergence, the technical indicator is currently facing downwards past the signal line.
Ethereum 4-hour chart
On the 4-hour chart, the MACD indicator appears indecisive, meaning it appears to be advocating for sideways trading. Despite this, the indicator is currently hovering within the negative area, meaning the bears are in control.
Investors should be keen on the direction of the MACD indicator in the coming hours. It is worth stating that another price decline is likely to happen if divergence increases beneath the signal line. From the look of things, lower support regions are expected at around $2,000 and $1,700, respectively.
We expect Ethereum’s bullish narrative to remain intact with the weekend here even if it plunges towards the 62 percent Fibo retracement level or the next resistance barrier. This is at $2,177 and $2,077, respectively. The rally expected to occur from the support levels aforementioned will likely push Ethereum towards its swing high at $2,553 and $2,850. If the general market improves during the weekend, Ethereum’s price rally might press on and push the crypto asset towards its range high of $2,910.
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.