ETH Price Analysis: Ethereum (ETH) Bulls Need to Hold this Key Support to Avoid Further Price Crash
ETH Price Overview
ETH price had a strong uptrend in place the last 2 weeks but it quickly came to a halt after getting rejected at two very important marks. After hitting its high of $4,500, ETH price has been in a strong downtrend along with the rest of the cryptocurrency market. Investors are still anticipating a strong upward push in light of the EIP-1559 upgrade that is scheduled to go live on Ethereum blockchain within the next few weeks. Although this may be beneficial, the chart has yet to flash overly bullish signals for short term price action.
While looking at the chart, we can see price has been stuck within a descending channel (shown in red) for nearly two months. Traders and investors have defended each side of the channel as an equal amount momentum has been seen. Price recently broke out of the channel but only later to close the day candle back below as a large rejection was seen on the long term trend, which is shown in dark black.
ETH price respected this trend for nearly 6 months but has failed to regain it the last few weeks.
ETH Price Analysis: ETH/USDT 1 Day Chart
Along with the long trend line lies two very important marks bulls must break & hold for ETH to be set free. These being the 50 Day MA & a major resistance zone of $2300-$2430. Until ETH holds above these marks, price is considered bearish. At the time of writing, ETH is playing with its major support of $2100. A break below this value will likely send price tumbling toward the major support zone of $1944-$1811. If bulls fail to hold this zone, price can fall hard and fast.
While looking at the Stochastic RSI, we can see the strength is correcting down after nearly 5 days above the overbought value of 80. This is a bearish scenario as strength must bounce off the 50 value to be saved from further downside. The relative strength Index has recently formed a slight double top formation around the 50 value which shows bears are defending price from entering bullish territory.
ETH intraday levels