Ethereum has yet to recover from a dip compared to Bitcoin, which tapped a new high this week. Following a recent rejection at $3.5k, it is lagging, but there’s hope for buying if the bulls regroup well.
Last week’s price break below the crucial $3k level triggered a serious panic in the market, but the bulls reacted quickly and pushed the price back from the $2,900 level. The price recovered well for a few days but the volume inflow is not enough to bring the bulls back in action.
The $3,500 level stopped the recovery during the weekend and the price dropped but later found temporary support above the $3,100 level.
Looking at the bigger picture, Ethereum’s short-term structure is still considered bearish following the lower low and lower high movement on the daily timeframe. From a technical standpoint, the bulls are trying to come back but their commitments appear weak at the time of writing.
If they regroup well this week, we can expect a major break through the falling resistance line, suppressing bullish actions since mid-December. That should set the pace for an increase just like Bitcoin.
But currently, it appears the bulls are still struggling with volatility. If by any chance the price dips below this month’s low, $2,500 would be its next selling target.
ETH’s Key Level To Watch
Source: Tradingview
Aside from the $2,920 level that stood as support last week, ETH has managed to create another support at $3,130 regardless of the existing bearish pattern. A collapse through these supports could slide the price to $2,723 in no time.
Towards the upside, it must break through the trendline to reclaim the $3,550 resistance level along with $3,830. Breaking through the $4,107 resistance should set the stage for a new high.
Key Resistance Levels: $3,550, $3,830, $4,107
Key Support Levels: $3,130, $2,920, $2,723
- Spot Price: $3,309
- Trend: Bearish
- Volatility: Low
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-january-23-eth-is-yet-to-find-a-break-faces-a-tough-resistance/