Ethereum's Price Situation
Ethereum (ETH) has seen a turbulent phase recently. After a slight rebound at the $2,800 support level, it reached a peak near $3,600. However, this high was short-lived as selling pressure increased, notably during a period referred to as “Black Monday,” causing a significant 40% drop. As a result, Ethereum broke its previous support, marking a new low at $2,100. This level of price corresponds to previous support established at the end of 2023, serving as a crucial barrier for ETH. Fortunately, Ethereum found buying support at this level, which allowed it to rise back to $2,800, although this momentum was not sustained.
Currently, Ethereum is trading around $2,400, indicating persistent selling pressure that complicates any changes to its short-term bearish structure. In terms of the medium and long-term trend, while theoretically bullish, it remains ambiguous. Ethereum has fallen below its 50-day and 200-day moving averages, both of which have experienced downward crossovers. Analyzing the momentum, there seems to be a last rebound holding its ground for now, as evidenced by Ethereum's price and its oscillators—tools that help detect possible overbought or oversold conditions.
Ethereum's Price Forecasts
If Ethereum manages to stay above the $2,300 support, there is potential for a bullish continuation, possibly re-entering the $2,800 range. The next resistance levels to monitor would be around $3,200 or $3,400. If this bullish momentum persists, Ethereum could reach $3,500, marking an increase of over 45% from the current level.
Conversely, if Ethereum fails to maintain its position above $2,300, a decline back to $2,100 could occur. Should the bearish trend continue, the next significant support would be around $2,000, with a possibility of dropping to $1,900, implying a potential 20% decline.
Conclusion
Ethereum is currently facing selling pressure that maintains a bearish short-term trend, despite attempts at rebounds. The medium and long-term trends remain uncertain, with mixed signals affecting its current momentum. It is crucial to monitor price responses to key levels closely to validate or amend existing forecasts. Moreover, be wary of potential “fake outs”—temporary price movements that deceive traders—and market “squeezes”—rapid price movements that force traders to exit positions—in each scenario. It's vital to remember that these analyses are based purely on technical criteria, and cryptocurrency prices can shift rapidly due to other more fundamental factors such as market sentiment, regulatory news, or technological advancements.
