The aftermath of the crypto crash has caused Ethereum to suffer severe losses. The prices of altcoins also fell as Bitcoin’s price sank below $30,000 Ethereum’s current price has hit a new low in 2022.
Although the altcoin attempted to recover briefly a week ago, market weakness ultimately raked in and led to further losses.
At the moment of writing, ETH was below its $2500 major support level. Investors fled the market due to increased selling pressure.
Technically speaking, Ethereum could continue to fall and possibly recover above $2500. Ethereum’s long entry point could be at $2500, with a stop loss at $2400 and profit between the $3000 to $3100 price level, respectively.
Ethereum Price Analysis: 1 Day Chart
Ethereum’s price were given support at the $2500 level for 43 weeks before they fell below the same. ETH trades at $1907. This price was last seen in August 2021.
There is a possibility that ETH will fall below $1900. ETH may find support temporarily at $1700 before making a rebound. Altcoin showed a long descending (yellow) line, and ETH was below that line at press time.
There are high chances of price rebounding as the coin has been heavily discounted. To see ETH’s price rebound successfully, it must first regain $2500 and then $3000. Over the past 28 hours, ETH has lost 8.8% market value, and the price of ETH dropped by more than 30% in the last week.
Technical Analysis
ETH’s price was seen below the 20-SMA which made investors stay away from buying the coin. If the 20-SMA is lower than it, this means that sellers are driving price momentum. As ETH dropped below its critical support level of $2500, bulls are tired.
Relative Strength Index neared the 20 mark, which was considered highly bullish due to an extreme sell-off. This indicates that the indicator is likely to hit a multimonth low.
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A Moving Average Convergence Devigence signal indicated a bearish signal. MACD was subject to a bearish cross-over because of its growing red signal bar, which indicated negative price action. However, buyers may resurgence briefly to push prices higher.
Chaikin Money flow indicates both capital outflows and inflows. It was lower than the halfline, meaning capital outflows were more than inflows. The market has seen a decrease in capital flows.
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Featured image by Unsplash. Chart from TradingView.com