After rising above $1,600 and staying above this level since September 12 reaching out toward $1,670, the Etherum price finally dropped on Wednesday, September 20. The drop came after the coin spent several days fluctuating between $1,550 and $1,670, its primary resistance preventing it from going up to $1700.
As the price dropped, it encountered support at around $1,575, briefly stopping the coin from sinking. However, the selling pressure was too intense, and the coin did not bounce back up. Instead, the bearish wave pushed further down, sending it to $1,570.
At the time of writing, Ethereum is trading at $1,578, down 0.8% on the day. Ether’s trading activity has increased significantly over the last 24 hours, rising by 108% to $4 billion, according to data from CoinMarketCap.
On the weekly timeframe, ETH remains bearish after dropping 2.75% over the last seven days. It is also down 4.5% and 11% over the last 30 days and six months respectively.
As a result of the losses, altcoin’s 14-week RSI fell to the support level at 38. The price strength is 40, and experts believe it will reach 30. If this happens, chances are good that ETH will see an additional price drop that might take it below $1,500 toward $1,200.
ETH/USD Weekly Chart
It is worth noting that some believe that this is an excellent opportunity to take a long position. This is supported by the bullish SuperTrend indicator. This trend-following chart overlay indicator is still green after turning bullish and moving below the price in April. As long as this indicator continues to trail the price, the largest altcoin by market capitalization will remain bullish on the weekly timeframe.
As such, if ETH manages to breach the current resistance and move up to the one sitting around between $16,44 and $1,774, embraced by the 100-weekly Simple Moving Average (SMA) and the 50-weekly SMA respectively.
Overcoming this level would see Ethereum rise above the $2,000 psychological level to reach the optimistic target of a symmetrical triangle at $2,050. This would represent a 30% ascent from the current price.
This positive narrative is also supported by on-chain data from blockchain analytics platform Santiment which said that the odds are good that Ethereum will soon bounce back. According to the company, one factor could make this happen. The platform noted that Ethereum’s network fees had dropped to its lowest levels this year.
“Ethereum network fees have dropped down to its lowest level of 2023, at just $1.15 per transaction. Historically, we see utility begin rising as $ETH becomes more affordable to circulate. Increased utility can then lead to recovering market cap levels.”
🤑 #Ethereum network fees have dropped down to its lowest level of 2023, at just $1.15 per transaction. Historically, we see utility begin rising as $ETH becomes more affordable to circulate. Increased utility can then lead to recovering market cap levels. https://t.co/MpOLfMYKUp pic.twitter.com/JI8ZLhmb4p
— Santiment (@santimentfeed) September 23, 2023
It is also worth remembering that September, historically the worst month for crypto prices, is nearing its end. With Q4 2023 only days away, the bullish sentiment may return in days and weeks to come.
Source: https://www.analyticsinsight.net/ethereum-price-prediction-will-eth-break-the-2000-barrier-soon/