After a short recovery in the past week, Ethereum faced tough resistance and resumed selling pressure. However, the trend looks weak as it continued to maintain a lower low and lower higher pattern.
The past week’s trading came with a little shift in Ethereum’s price as it increased by over 10% to $3,428. Unfortunately, the momentum didn’t last long due to a rejection and the price fell back to $3,171 at the time of writing.
This fallout has caused serious fear and panic in the market and as we can see, the price is currently down 5% on the day. That gave the bears control on the short-term scale and are now charging to retake the important $3k level.
Losing this important level might result in a bigger loss capable of rolling the price back to $2.5k before picking up. Failure to resume buying from this level may lead to a huge crackdown, which could bring an end to the long-term bullish move.
Looking at the bigger picture, ETH’s market structure is still considered bullish on the macro level, though the setups are beginning to look more like a bearish shift as the price corrects broader on the daily scale.
Regaining full control of the market, the bulls must reclaim the lost $4100 level. A break above this crucial high should set up the market for a new buying phase.
ETH’s Key Level To Watch
Source: Tradingview
Ethereum is currently eyeing the $3,000 level. A cross-down from there could dip the price to the $2,920 support. Below this support lies $2,723, followed by the main $2,500 level.
The falling resistance line may serve as a barrier for the bulls in case of a rebound. A clear push above it could bring a test at the $3,525 and $3,745 resistance levels. There’s also resistance at $3,800 for more increase.
Key Resistance Levels: $3,525, $3,745, $4,107
Key Support Levels: $3,130, $2,920, $2,723
- Spot Price: $3,171
- 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-january-27-eths-correction-deepens-amid-latest-drops-will-3k-hold/