Ethereum price is showing a tremendous decline from the past few days. At the time of writing, the ETH price has fallen by more than 4% over the past 24 hours of trading. This price drop is expected to put Ethereum into a period of stabilization. Let’s take a look at it in more detail.
Ethereum Price Analysis: ETH in the bearish zone
As mentioned earlier, the Ethereum price dropped by more than 4% over the past 24 hours, dropping into the $260 level. The ETH had attempted to progress, but, it couldn’t defeat the resistance at $277 which made it roll back and drop.
This price decline is because of Bitcoin’s price. The BTC is not showing any progress above the $10,000. Also, ETH failed to break above solid resistance.
Ethereum Price Analysis: ETH price Could face further drop?
On the 1 day chart, the Ethereum price is in a bearish zone below. If ETH fails to cover the $239 support zone, there is a chance of a more substantial drop towards the $208 zone in the short term.
Meantime, the MACD line and the signal line are below zero lines which symbolizes a sell flag.
- Resistance levels: $266, $281, $302
- Support levels: $248, $239, $208
In our previous analysis, we had reported that Ethereum hasn’t been able to set any sort of support levels. As per our analysis, if Ethereum price encounters a pullback, it will be big. In fact, historically, Ethereum has seen the most influential pullbacks right after huge price surges.
Currently, the RSI is at 48.90 points, showing neutral behavior. Moreover, some modification has also occurred between the RSI and price action. This simply symbolizes that the next support level is at 239 USD and if Ethereum price gores pass this support then the next support is at 248 USD.
Conclusion
The moving averages are in the buying zone. The exponential moving average and simple moving average both are in the strong buying zone. The Resistance levels are $200, and $213 while the support levels are $195 and $190. Ethereum has been undergoing a range of updates and hard forks created to enhance the current Proof of Work protocol for a Proof of Stake. These could be the main reasons behind the sudden drop.
