- ETH/USD started a new downside correction after hitting a multi-year high of $1,480.
- Ethereum price has dropped by about 10 percent since hitting new ATH.
- The Ethereum price action is closing in on the $1,275, and $1,280 key supports.
- Further ETH/USD decline seems unlikely.
Ethereum Price Prediction: General price overview
After the robust bullish rally past the $1,400 price level, the bulls failed to test the resistance level at $1,500. However, Ethereum managed to hit a new all-time high at $1,480 on January 25 before pulling back. The second-largest cryptocurrency is currently trading in a bullish zone above the $1,200 support and will possibly retest the $1,500 resistance in the near term.
Ethereum started the day trading at a market price of $1,317.60. So far, the ETH/USD pair has reached a daily high of $1,378.49 and has traded as low as $1,294.83. So far, the daily traded volume is $43.566 billion, and at the time of writing, the ETH/USD pair is trading at a market price of $1,334.20.
Ethereum Price Prediction: ETH/USD price analysis
Over the past couple of sessions, the ETH/USD pair rallied strongly past the $1,200 support zone. The second-largest cryptocurrency went past a few key barriers near $1,300 and $1,350 to climb further. Ethereum price went ahead and broke past the $1,380 and $1,400 support levels to hit a new multi-year high of $1,480 before entering a corrective phase.
The ETH/USD pair broke below a key bullish trendline with support at around $1,384 on Ethereum’s 1-hour chart. Ethereum price sunk under the $1,350 support to move into a bear market in the short run. Ether has created a low of around $1,291. Besides, the pair broke under the 23.6 percent Fib retracement levels of the latest drop from $1,480 swing highs to $1,291 swing lows.
In its attempt to rise higher, Ethereum faces immediate resistance near the $1,365, which is near the 50% Fib retracement levels of the recent fall from $1,480 to $1,291. The next hurdle is near the $1,385.0 and $1,400.0 resistance levels.
On the other hand, the ETH/USD pair is closing in on a couple of vital anchors near $1,300 and $1,285. The most vital support is forming near the $1,275 price level. If the Ethereum price declines below this level, there would be a risk of further downfall in the coming days.
Ethereum Price Prediction: Conclusion
The ETH/USD pair is currently within a positive zone above $1,250. Ethereum bulls must first overcome the $1,365 and $1,385 selling pressure to trigger more gains. If the bulls manage to overcome $1,385.0 successfully, it could pave the way for Ethereum price to soar higher. The next hurdles are near the $1,450 and $1,480 price levels, which Ethereum will probably test in the near future.
As Ethereum price moved high, Bitcoin moved in the opposite direction with the world’s largest cryptocurrency pulling back below the $30,000 price level. This follows the reports of incoming treasury secretary Janet Yellen suggesting that the legislators should minimize the use of cryptocurrencies, the claims that a “critical flaw’ had been identified on the Bitcoin Network. Bitcoin price touched the $28k price level before recovering back above the $30K price level after experts dismissed the claims of a critical network flow on the Bitcoin blockchain through Twitter.