Ethereum Price Prediction: Recession To $2.5K On The Way?

Ethereum’s price prediction is trending toward negative, raising concerns about potential downside risks.

The BTC/Ethereum MVRV Momentum Oscillator (180-day) chart reveals the Ethereum momentum getting dragged into negative territory after a long period of bullishness.

Past instances have occurred before sharp corrections in ETH’s price, which coincide with market anomalies.

The chart data shows that every other instance of negative momentum in the past two years has occurred when Ethereum prices declined.

The current transition to Ethereum also has heavy weight put on it based on past instances.

An example is May 2022 and September 2023, with significant sell-offs each time. However, the latest shift in momentum signals a possible downward trend unless this is reversed with some force.

Ethereum Remains Green In 24 Hours

Although negated by the negative momentum signal, Ethereum has gained 0.50% within the past 24 hours and is priced at $2,721.95 as per CoinMarketCap.

The sustained demand for the asset has seen Ethereum’s market capitalization reach $329.07B.

Nevertheless, the 24-hour trading volume dropped by 23%, signaling a decline in buying interest and possibly a loss of bullish momentum.

There has been a fair amount of volatility during the last 24 hours, and the trading range is between $2,682 and $2,736.

Yet, the volume-to-market cap ratio is now in the range of 4.09%. This means that despite the high trading, it isn’t at such high levels that would represent a significant breakout or breakdown.

Ethereum Price Prediction: Technical Analysis and Market Outlook

On the 4-hour timeframe, Ethereum’s price action shows a consolidation phase after a sharp decline.

Charts show a marked fall, which is subsequently prolonged in a horizontal zone bounded in red.

This range shows that the market is indecisive; neither buyers nor sellers have become explicit.

The price is consolidating between $2,600 and $2,850. Both the support and the resistance levels have rejected the price multiple times.

Resistance is nearly $2,850, while the primary support level within this range is around $2,600. Until then, Ethereum will likely remain sideways within this zone.

As we saw in this range from the previous downtrend, Ethereum plummeted. However, while buyers weighed in at $2,600, they missed breaking above, which points to hesitation in the market.

That said, given that buyers came in around here, there is demand at this level. If Ethereum breaks above the $2,850 resistance, it may take it to $3,000 and above.

On the other hand, a breakdown below $2,600 may lead the asset to further down towards $2,400 or even $2,200.

According to the Money Flow Index (MFI), the outlook is neutral to slightly bullish, with a value of 57.30.

The MFI is back within the 20 – 80 oversold/overbought region. This shows that there is currently no strong buying or selling pressure on the token.

So far, the MFI trend has slightly increased from a mild accumulation. However, we haven’t seen a strong bullish breakout quite yet.

Ethereum is in a prolonged consolidation, which puts it at a critical juncture. The range must be broken decisively for the next major trend to be confirmed.

A bullish sign would be bulls pushing ETH/USD above $2,850. However, the lack of holding $2,600 as support could result in Ethereum retesting lower levels, with $2,400 and $2,200 as target levels.