Ethereum bled hard due to the fallout from the cryptocurrency crash. Other cryptocurrency prices followed suit as Bitcoin dropped below the $30,000 price mark. The current Ethereum price reached a new low in 2022.
The altcoin attempted a short recovery a week ago, but the broader weakness in the market finally crept in and caused further declines.
At the time of writing, ETH is seen below the key $2,500 support line. Selling pressure accelerated as a growing fear indicator pushed investors out of the market.
From a technical view, Ethereum is poised for a further pullback and then a rebound above $2,500. The long entry point for Ethereum can be at $2,500, with a stop loss at $2,400 and profit between $3000 and $3,100, respectively.
Ethereum Price Analysis: 1 Day Chart
Ethereum price found support at the $2,500 level for 43 weeks before dropping below the same level. At the time of writing, ETH is trading at $1,907. The last time the coin touched this level was in August 2021.
A move below the $1900 level can be expected and ETH may find temporary support at the $1700 region before bouncing back again. The altcoin displayed a long descending streak (yellow), and at the time of publication, ETH had broken below the descending streak.
Chances of a price rebound cannot be ruled out because the currency is significantly discounted. For ETH to make a successful price recovery, it needs to recover $2,500 and then $3000. Over the past 28 hours, ETH has lost 8.8% of its market capitalization, and in the past week, the value of the coin has fallen by more than 30%.
ETH price was seen below the 20-SMA which made investors stay away from buying the coin. A reading below the 20-SMA means that the sellers were driving the price momentum in the market. The bulls are fed up with ETH dropping below its crucial $2,500 support.
The RSI was approaching the 20 level which is very bullish as it represents a heavy selling in the market. The RSI was last hovering around this range in January, indicating a multi-month low for the indicator.
Related reading | TA: Ethereum sinks 15%, why closing below $2K is key
Moving Average Convergence Divergence indicated a bearish signal on the chart. The MACD underwent a bearish crossover as it showed increasing red signal bars highlighting negative price action for the currency. On the flip side, the appearance of buyers can help push prices higher for a while.
Chaikin Money Flow refers to the capital outflow and inflow of capital. The index was below the half line, which means that capital outflows were greater than inflows at the time of publication. Capital inflows were negatively affected as buyers left the market.
Related reading | TA: Ethereum Penetration Area Nears, Why ETH Might Start to Recover
Featured image from Unsplash, chart from TradingView.com