As expected, Ethereum finally corrected broadly following a colossal drop today. This created serious panic and fear among traders and investors, but the crypto has managed to stay above the August 2024 low.
The past weeks of correction have seen many reductions in Ethereum, but today’s drop alone appears to have been the biggest loss for the crypto, as it reset back to $2,125 after months of trading.
However, there’s still hope for the bulls if the critical $2,100 support level holds. But looking at the market, the bears are fully back in control, and as a result, the overall market is now following a negative sentiment.
This might lead to more bearish actions in the coming days. However, a strong recovery above $3.4k should bring back positive sentiment. If not, ETH may subject the market to a little consolidation phase before advancing bearish.
A dip below the mentioned critical support could trigger a bigger loss capable of fueling a mid-term bearish move. Interestingly, such a setup could bring an end to the bullish cycle from a technical standpoint.
Amongst the top five, Ethereum recorded the biggest loss in the last 24 hours following a 25% crash to its 7-month low. However, it has seen a nice recovery but it currently appears oversold on the daily scale.
ETH’s Key Level To Watch
Source: Tradingview
Due to the sharp rejection, ETH is now holding the $2,480 and $2,310 levels as support. Meanwhile, the $2,111 level is considered the main support in the short-term. If the bulls fail to defend it, the next test level would be $2k.
In the meantime, the $2,723 level is considered a close resistance. If the price increases above it, the next resistance level for a recovery would be $2,920. Above it lies $3,213.
Key Resistance Levels: $2,723, $2,920, $3,213
Key Support Levels: $2,480, $2,310, $2,111
- Spot Price: $2,578
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Source: https://nulltx.com/ethereum-price-analysis-prediction-february-3-eth-tests-7-month-low-recovers-after-crashing-25-daily/