Monday, May 16

Ethereum Price Analysis: ETH Approaching Key Support at $3K, Will It Hold?


Key Support levels: $3,000, $2,750

Key Resistance levels: $3,300, $3,600, $4,000

The last three days brought a lot of fear in the market, and ETH’s price started falling towards the $3,000 support level. The market is now at a critical junction, and in the case of ETH, a break below this key support would be catastrophic for bulls. The previous level at $3,300 is now acting as resistance.

The next few days will be decisive.

ETHUSD_2022-01-19_14-08-47
Chart by TradingView

Technical Indicators

Trading Volume: The volume on this most recent drop was high. This shows that bears are having a feast, and the fear in the market has been increasing with each passing day. Since ETH is now close to the key support, it is likely that bulls will make a stand here.

RSI: After escaping from the oversold area last week, ETH failed to rally, and now the daily RSI is falling yet again towards the oversold area under 30 points. If the bulls fail to defend the key support, then the RSI will fall lower.

MACD: After the daily MACD completed a bullish cross, the price could not sustain the bullish momentum and the histogram is making lower highs. A bearish crossover could be next if buyers don’t stop the assault.

ETHUSD_2022-01-19_14-08-26
Chart by TradingView

Bias

The bias for ETH is currently bearish. However, it’s also important to consider that the bulls might try to make a stand at the key support level.

Short-Term Price Prediction for ETH

ETH has had a difficult week after falling almost 10%. The key support at $3,000 is really the last line of defense that can maintain optimism in the overall market. If the buyers fail to keep the price above it, then the cryptocurrency might fall much lower.

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Cryptocurrency charts by TradingView.



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