Ethereum price is unable to move upwards significantly, as more investors believe that sellers are taking profits at current levels. Although, the no. 2 crypto has managed to stage a partial rebound after its sharp decline halted at the $2,159 region. However, the near-term picture has deteriorated again, with Ether losing some ground for the 2nd day in a row after 5 days of gains. Technically, ETH has stalled its recent advance at the $2,815 level near the September 2021 horizontal channel. At the time of analysis, ETH/USD is exchanging hands at $2,620, in a plunge towards the $2,500. As per IntoTheBlock analytics, a total of 302,092 ETH left centralized exchanges just in 2022. Ethereum exchange balances are declining, indicating that ETH investors are committed to the long term after a surge in price over the last year. As a result, the continued flow of coins to cold wallets could signal long-term price volatility.
Key Levels
Resistance Levels: $3,400, $3,000, $3,700
Support Levels: $2,500, $2,300, $2,000
ETH/USD Daily ChartAs seen on the daily chart, Ether’s recent pullback from $2,815 is likely to continue towards $2,500 or lower as momentum indicators confirm the loss of steam for the no. 2 crypto. The moving average (MA 50) is sloping downwards into the bearish channel, while the relative strength index (RSI) is ticking down beneath the 40 mark.
Moreover, the price is currently trading far below its all-time high of $4,867, endorsing the broader bearish picture for the coin. If the bearish momentum continues, the price could go below $2,500. On the other hand, if buyers re-emerge and regain control, early resistance might form at $2,900 and the psychological level of $3,000.
ETH/USD 4-Hour ChartETH/USD rebound on the 4-hour chart seems in danger as the positive momentum has failed to intensify, while near-term risks remain tilted to the downside. Therefore, only a profound bounce off the short-term moving average (MA 50) at $2,600 could signal the continuation of the short-term recovery for the no. 2 crypto.
Fresh strength might signal the formation of a bull trap, which underpins the bearish disposition but would require a confirmation on a close above the short-term moving average (MA 50), preferably above the $2,600 mark, to add to positive signals. Overall we can expect the price to drop or might break resistance at $2,700 and head for $3,000 resistance.
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