Price Analysis

Ethereum Price Feared To Fall In Deep Wells, Will It Let Go $2000 Levels?

Highlights

    Ethereum price which crossed the 200-day MA dips below the levels feared to shed more gains to reach close or below $2000

    On the daily chart, the price dips every sixth day after a 5-day long jump and hence a considerable surge could be on the cards

Ethereum price rally can be considered as one of the most consistent rallies of all. As, despite huge dips, the ETH price is able to manage the trembled situation. The entire crypto space in the last few days displayed immense uncertainty. The tiny surges followed by huge dips however has dissolved the bullish trend to some extent.

In the coming days, the fear of the bearish divergence continues to haunt the price rally as the asset has slipped below the 200-day and 50-day MA. Moreover, the immense selling has squeezed the rally drastically. The RSI also has bottomed to the lowest levels around 13 in the hourly chart.

According to a prediction by an analyst Mudrex, the price could slip to $2000 in the next 24 hours if the selling pressure continues. 

eth dump

The analyst explains the major reasons for the plunge which indicates an overall bearish momentum:-

  • The price broke the trend line on the 4hr price chart
  • The breakdown from the 200-day MA which is carried from a very long time
  • Moreover, critical long-term support levels at $2169 were smashed 

Also, the trading volume remained higher yet due to the mounting selling pressure confirming a selling trend. Therefore, a deep plunge below $2000 is very likely if the price does not initiate with an uptrend.

 Moreover, a popular analyst and founder of CryptoAcademyHQ Justin Bennett sees a possible revisit to $1700 levels too. But the analyst also says that the current trend does not signify the bullish trend cannot resume. As the ETH price still maintains above the November 2020 trend line on the daily chart, it might carry it towards $10,000 too. However, the timeline for the Ethereum price rally could be extended to 2022.

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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