- Ethereum price to observe sideways movement at the $1,000 level.
- The nearest support lies at $900.
- ETH faces resistance in crossing the $$1,100 level.
Ethereum (ETH) price has fallen below the $1,200 level as the asset observed strong bearish activity causing the price to fall below the $1,000 level. While the price has recovered since then, the bulls seem hardpressed to defend the $1,000 level.
The broader cryptocurrency market sentiment is also bearish as most major cryptocurrencies recorded double-digit losses across the last 24 hours. These include Bitcoin that observed a 13 percent decline falling below the $33,000 level.
Ethereum price overview: Ethereum price across January 2021
Ethereum price started the year with little to no momentum on both sides as the price consolidated at the $750 level. However, the price found support on January 3 as strong bullish activity caused Ethereum to initiate a bull rally. The bullish rally carried the price above the $1,000 level before stopping.
However, the bulls were not done yet, and the price continued rising after a brief correction to the $1,100 level. This time ETH rose with a lower but more sustainable ascending channel. The channel carried the price to the $1,300 level.
However, the bulls were exhausted at the level, and ETH could not close above the level, enabling the bears to dominate the market. Subsequently, the Ethereum price turned bearish with the sellers controlling the price action until now. The price has retraced to the $1,000 level with potential for further downside movement.
Technical indicators and what to expect from Litecoin price
Across the technical indicators, the MACD shows strong bearish pressure as 12-EMA continues its descent. However, the EMAs seem to be converging, which suggests a declining bearish momentum. The indicator would suggest a bullish reversal if Ethereum recovers above the $1,100 level.
The RSI remains neutral but inclines towards the lower region, suggesting that sharp downwards movement would make Ethereum oversold and issue a buy signal. However, the RSI is currently at 37.30 and declining, suggesting that Ethereum may fall further before stabilizing.
The Bollinger bands are expanding, suggesting increasing price volatility for Ethereum. The indicator suggests that Ethereum has room for sharp movement and supports the current bearish trend.
Overall, 13 of the 28 major technical indicators issue a buy signal, while only five indicators issue sell signals. Meanwhile, ten indicators remain neutral and do not indicate support towards either side.
Traders should expect the Ethereum price to observe sideways movement at the current level with the potential of falling to the $950 support level. If ETH continues to hold above the $1,000 level, ETH may recover to $1,100 in the next few days, continuing its rise towards its all-time high price.
Conversely, if Ethereum price falls below the $900 support level, ETH may fall to the $800 level before declining to the $750 level. However, that might not be the case as ETH observes a bullish trend across the weekly frames.
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.