The Ethereum (ETH) Price Analysis: Trying to Rebalance After Market Crash
The Ethereum (ETH) price has been on a decline since the cryptocurrency market crash in mid-August. However, the ETH price is currently attempting to rebalance and find stability. Here are the key points to note:
- If the Ethereum price holds the key $1,630 area, there could be a short-term bounce to complete a bearish retest of the $1,800 level. The next important support level is at $1,375.
- The weekly chart shows bearish signals as the ETH price has lost the median of the ascending parallel channel it has been trading in for over a year. This key support level, now near $1,800, is expected to act as resistance if there is a bounce. The lower edge of the channel, at $1,375, is an important confluence level.
- The loss of support at the $1,720 level on the weekly chart indicates a bearish outlook. This support level had been a higher low and coincided with the channel median. The Ethereum price generated a lower low for the first time since June 2022.
- The daily chart confirms the bearish signals from the weekly timeframe, but there are also some slightly bullish signals. The loss of an important diagonal support line suggests a trend reversal, but the lower low is not confirmed as long as the ETH price holds the support area around $1,630. The RSI and MACD indicators also provide some bullish signals.
- If the Ethereum price loses support at $1,630, further declines are expected. The nearest support area is at $1,370, and a drop all the way to the late 2022 bottom at $1,155 is possible.
Hot Take:
The Ethereum price is currently at a critical juncture as it attempts to find stability after the market crash. While there are some bearish signals, the support at $1,630 and the potential for bullish indicators to play out provide hope for a bounce. However, a break below $1,630 could lead to further declines. Crypto investors should closely monitor these key levels to make informed decisions.
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