As the drop in the ETH price does not yet seem to have bottomed out, there might be more selling or volatility. If the value of ETH lost the support at USD 1,728, the ground would be clear for USD 1,571.
Amid a wave of extreme fear in the crypto market, Ether (ETH) reached a relevant support zone around USD 2,000. The following analysis provides information on where the value of ETH might head next in the coming days.
Ether is trading at around USD 2,049 and has accumulated a 7.2% gain over the last 24 hours. While its trading volume is above USD 24.87 billion, its market capitalization is about USD 247.54 billion, according to CoinGecko.
The fear fueled by the crash of TerraUSD (UST) led to sell-offs in the crypto market, which has caused a lot of trouble.
In addition, the bearish tide of the traditional markets places investors under further selling pressure. The expectations about increasing interest rates rise due to the news about the 8.3% inflation in the United States.
The Technical Analysis of the Price of ETH
When the crypto market crashes, the price of the native token of the Ethereum network also drops. The outlook looks somewhat bearish as it has just broken through support at USD 2,276.
However, the monthly chart shows that the price of ETH is still within a higher demand zone. There is a slight probability that a bullish rally will start in that area.
A Fibonacci line drawn from the lowest point of the bullish rally starting in 2020 allows seeing the price currently testing 61.8%. That is an optimal level where the value of ETH generally reaches the bottom of corrective processes.
There is still no confirmation that the drop in the price of Ether has bottomed out. There will most likely be more selling or volatility in the short term. If the price of ETH lost its current support zone, the ground would be clear for USD 1,105.
Some analysts do not expect a too deep crypto winter in the markets and the economy in the coming months. They think that a little more volatility may be enough to reach the bottom.
The Daily Analysis of the Price of ETH
The daily ETH/USDT shows that the short-term trend is bearish for the Ether price, which might cause further trouble in the coming days.
If the price continues to reach increasingly low lows in this time frame, there may be more selling in the short term. A sideways behavior might be the least worrying thing that could happen shortly.
The price of ETH recently rejected a significant support level at USD 1,728. There might be at least one relief rally in the next few days.
If the value of ETH lost that support level, the ground would be clear for USD 1,571.
Before confirming that the bulls have regained control of the short-term trend, the price must break through the immediate resistance at USD 2,340.
By Alexander Salazar
