Amid the tide of extreme fear in the crypto market, Ethereum is visiting a very important support zone, adjacent to $2,000, and in this analysis we will find out where the price may react next.
At the time of writing, ETH is trading at $1,992, accumulating a loss of 9.51% in the last 24 hours, and 27.61% in the last 7 days.
The massive selloffs in the crypto market, fueled by the fear injected by the UST crash, have been causing quite a few problems.
In addition, the widespread bearish tide in traditional markets, print even more selling pressure. The data of 8.3% inflation in the United States published yesterday, is again increasing expectations of an increase in interest rates.
Ethereum technical analysis
Ethereum has not been the exception at the time of falling. Now that it has just broken through a support at $2,276, the scenario may seem somewhat pessimistic.
However, in the analysis of the monthly chart we see that the Ethereum price is still located within a wider demand zone, where there is a slight probability that a bullish rally will begin.
If we plot a Fibonacci from the lowest point of the bullish rally that began in 2020, we see that the price is currently visiting 61.8%, an optimal level where the bottom of corrective processes is usually touched.
Currently, there is no confirmation that the fall has already bottomed out. In fact, right now we will most likely see more selling or volatility in the short term. In case the support zone in which ETH is located is lost, then the ground will be cleared up to $1,105.
From my current perception of the markets and economy in general, it doesn’t seem like a very good idea to expect a too deep crypto winter in the coming months. A little more volatility may be enough to hit the bottom.
Key levels for short-term ETH
In an analysis of the daily chart we can observe, that the short-term trend is undoubtedly bearish for the Ethereum price, and this could still cause some problems in the coming days.
As long as we continue to see lower and lower lows in this time frame, we will most likely see more selling in the near term. The least worrisome thing we could see, is a sideways behavior in the near future.
Today we saw a strong rejection of a very important support level, located at $1,728. It looks like we will see at least an uptick in relief in the next few hours from the current point.
In case that support level is lost, then the ground will be cleared up to $1,571.
The immediate resistance is currently at $2,340, and it is the one that the broken ones must break through to confirm that they are retaking control of the short-term trend.
All our publications are of an informative nature, so in no case should they be regarded as investment advice.
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