Ethereum has already bled a lot as a result of the cryptocurrency crash. As Bitcoin dipped below the $30,000 price barrier, other altcoins followed suit. Ethereum’s current price is hitting a new low in 2022.
The altcoin attempted a brief recovery a week ago, but weakness in the broader market eventually spread and caused it to fall further.
At the time of writing, ETH is trading below the major support line at $2,500. Selling pressure accelerated as a rise in the fear gauge drove investors out of the market.
From the technical outlook, Ethereum will fall further and then may rally above $2,500. A long entry in Ethereum is likely at $2,500, with a stop loss at $2,400 and a profit between $3,000 and $3,100, respectively.
Ethereum Price Analysis: One Day Chart
Ethereum price found 43-week support at the $2,500 level before falling below that level. At press time, ETH is trading at $1,907. The last time the coin touched this price level was in August 2021.
A break below $1,900 is expected and ETH may find temporary support in the $1,700 area before bouncing back. The altcoin is showing a long descending line (yellow), with ETH falling below it at press time.
As the coin is heavily discounted, a price rebound cannot be ruled out. For ETH price to successfully bounce back, it must reclaim $2,500 and then $3,000. In the past 28 hours, ETH has lost 8.8% of its market cap, and in the past week, the coin has lost more than 30% of its value.
The price of ETH is below the 20-SMA, which is keeping investors away from buying the coin. A reading below the 20 SMA means that sellers are driving price momentum in the market. The bulls are tired as ETH dipped below key support at $2,500.
The RSI is near 20, which is considered very bullish as it marks a strong sell-off in the market. The RSI last hovered in that range in January, pointing to a multi-month low for the indicator.
Related reading | TA: Ethereum drops 15%, why closing below $2,000 is key
The moving average convergence divergence is a bearish signal on the chart. The MACD experienced a bearish crossover as it showed an increasing number of red signal bars, highlighting the coin’s negative price action. On the other hand, a resurgence of buyers could help push prices higher briefly.
Chaikin Money Flow represents capital outflows and inflows. The indicator is below the half line, which means that capital outflows are greater than inflows at press time. Capital inflows were negatively impacted as buyers left the market.
Related reading | TA: Ethereum is nearing a breakout zone, why ETH may start a recovery
Featured image from Unsplash, chart from TradingView.com