During the recent blood bath, ETH price lost some significant support levels, like 200-EMA, $3600 psychological level, price pattern support. Today ETH price showed a sharp dip which breached the 0.5 Fibonacci retracement level, indicating the extending correction phase.
Key technical points:
- The daily RSI line slipped into the oversold region
- The ETH price chart shows a bearish crossover of the 50-and-200 EMA
- The 24-hour trading volume in Ethereum is $15.7 billion, indicating a 17.84% gain.
Source-Tradingview
Previously we reported ETHUSD pair fallout from a falling wedge pattern of the daily time frame chart. On January 5th, the bearish candle breached the support trendline and the $3600 horizontal level together, triggering a short opportunity for crypto traders.
Furthermore, the bloodbath on the crypto market fueled the selling pressure and dropped the coin price to $3000. The technical chart showed four consecutive red candles, projecting around 20% fall in one week.
The crucial DMAs levels(20, 50, 100, and 200) indicate a bearish trend for the ETH price. Moreover, the death crossover of the 50 and 200 DMA, could lure more sellers into the market.
The daily Relative Strength Index (RSI) of 27 has made a sudden entry in the overbought territory, indicating the intensity of the selling pressure.
ETH Price Could Pullback To Retest The $3000
Source- Tradingview
The ETH con price is currently trading at the $3168 mark, with an intraday gain of 2.81%. The downward rally has recently breached another support level of 0.5 Fibonacci retracement level, adding an extra edge to market sellers.
The ETH price could retrace to stabilize the rapid fall and also retest the $3272 new resistance. Sustaining below this level, the price would continue the selling march.
The traditional pivot level indicates the important resistance levels for Ethereum coin price is $3100, followed by $3570. As for the flipped side, support levels are $3000 and $2750.
Ethereum On-Chain Updates
While ETH price is expected drop further as per technical analysis, here are major Ethereum on-chain updates in last 24hrs:
- Number of ETH addresses holding more than 0.01 ETH just reached an all time high of 20, 786,720 addresses. Considering most of this aggregation took place while Ethereum’s uptrend to an all time high, the number of addresses in loss is also at a 14 month high.
- Ethereum miner revenue reached a three month low while the mining difficulty just reached an all time high of 12,797,639,925,265,700. The miners are still holding ETH as miner outflows hit a 5 month low.
- Total value locked in ETH 2.o reached an all time high of 8,979,650 ETH.
Source: Glassnode
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/ethereum-price-analysis-eth-price-drops-below-the-50-retracement-level/