Why Ethereum Could Drop To $1,500 After The Altcoin Rallied 30%

Ethereum’s bullish momentum is being hampered by sellers, who may pull Ethereum back to the $1500 area or even lower.

The king of all altcoins took advantage of the crypto market’s late October push, surging all the way to $1,655. This was the territory it attempted to get to $1,700.

  • ETH has been steadily holding onto the $1600 zone for now
  • Due to intense selling pressure, Ethereum may retest $1,500 as support.
  • In 30 days, the altcoin will trade for less than $1,400

But the effects of the Federal Reserves’ 75 bps interest rate hike caught up with the cryptocurrency and made it fall all the way down to $1,500 once again.

According to data from the most recent, $1,615 is now its current trading price. Coingecko.

ETH grew 30% over two weeks. But, ETH could lose its gains if the selling pressure persists.

Sellers could push Ethereum to test a familiar support level

The crypto will keep holding the $1600 mark, which attracts sellers, especially those who began to accumulate when ETH struggled to hit the $1400 threshold.

TradingView

Digital currency may be under more pressure right now. It could fall by 7% and will visit a familiar territory – the $1,500 support level.

The Ethereum price dump will place it in a double top pattern, which is an acceleration bearish cycle. This will eventually cause the asset to fall below its support zone.

It’s worse for ETH, as the Relative Strength Index of (RSI), which was bullish in previous movements, is now showing weakening. This seems to confirm bearish predictions.

According to technical analysis, the cryptocurrency’s volatility is currently low. Therefore it is possible that any declines that are observed could last for some time.

Coincodex sees the same for Ethereum

Coincodex, an internet tracker and provider of crypto data, sees the exact same dire situation in the second quarterDLargest cryptocurrency by market capitalization

Its PrognosisETH will trade for $1,533 in the following five days as it leaves the $1.600 region it had hit since responding to October’s appeal. Labor ReportThe U.S.

It is expected that the cryptocurrency asset will drop below $1,400 in the next 30 days and settle at $1,357.

It would appear that Ethereum’s only chance to avoid revisiting the mentioned price levels is if sellers are unable to exert strong pressure that could undermine its current bullish movement.

ETH market capital at $198.6billion according to the Weekly Chart. Featured image by Kryptomoney. Chart by TradingView.com| Featured image from Kryptomoney, Chart: TradingView.com

Disclaimer: This analysis is the author's own understanding of crypto markets and shouldn't be taken as investment advice.

Get more Crypto News at CFX Magazine