Though Ethereum is the world’s second-largest cryptocurrency, ETH prices could risk falling more than 20% in upcoming months if selling pressure increases. It is showing a bearish outlook in daily and weekly charts. At the time of writing, the price of Ethereum is around $3233. On the daily chart, it broke the support level of $3625 and is trying to reach its pessimistic target. The initial support level will be around $3000, but if ETH breaks this level, it may go down to $2000.
If you look at the chart closely, you can draw many trendlines; though trendlines do not give you an exact idea about a chart. It broke the trendline on December 13, 2021; after that, it faced resistance at $4110 and surprisingly forgot to take a bullish turn.
Ethereum started a bull run on July 21, 2021, and reached an ATH of $4900 in November. After that, it consolidated for a couple of months, and now it has started to correct downwards. Many experts are of the opinion that the competitors of ETH are increasing, so investors are losing interest in this coin. There are many experts and followers of Ethreuem who deny this fact.
On the daily chart, MACD is bearish; RSI is in the oversold zone around 30. The Bollinger Band is also coming downward, setting a bearish trend. Moreover, the last two candlesticks broke the lower half of the BB, which signifies extreme bearishness.
On the weekly chart, the case is no different. It has been coming downward after creating a hanging man candle in November. Though MACD is bearish on the weekly chart, the RSI is not in the oversold zone. We think RSI will come to a point below 40 within a couple of weeks. The volatility in the Bollinger Bands have increased, but the candlesticks are below the baseline.
After the Fed announced the inflation shrinking policies, the effects can be seen in the stock markets and cryptocurrencies. Indeed, it is a new form of digital currency because of different government regulations; cryptocurrency can be the worst hit in this situation. However, BTC, ETH, ADA have the potential to bounce back in the future.
What if the present scenario continues? Find more information about the coin’s possible future trends by doing your own research. The next support level will be $2000, which is far below the modern trading price. However, holders should not worry if they have a holding; the price of Ethereum will take a bullish reversal and provide a good return in a couple of years. Investors have enjoyed higher returns in the last two years; now, all you need is patience. Based on the Ethereum forecast, it is the ideal time to start investing for long-term investors.
Source: https://www.cryptonewsz.com/ethereum-prepares-for-deep-plunge-how-low-will-eth-go/