Ethereum Price Analysis: ETH Drops 20% For The Week, Can The USD 2,000 Support Be Sustained?
ETH collapsed 8% today, hitting $ 2000. On the BTC pair, the bulls are trying to defend the 0.061 BTC level but selling pressure is mounting.
ETH / USD – ETH is below consolidation and approaching USD 2,000.
- Major support levels: $ 2,000, $ 1,925, $ 1,888.
- Major Resistance Levels: $ 2,200, $ 2,340, $ 2,400.
Ethereum has now plummeted 20% for the week, nearing psychological support at $ 2,000. It has been trading in a symmetrical triangle for the past three weeks but finally broke out of that consolidation on Friday.
Yesterday, ETH showed signs of weakness as it fell to the February 2021 high of $ 2,036. It has since rebounded, closing the daily candle at $ 2,245. Today, however, sellers have regained control and pushed ETH down to as low as $ 1,975.
It found support at $ 2,000, a psychological level enhanced by the retracement level of 0.786 Fib. A break below this level could cause ETH to crash in the coming weeks.
ETH / USD daily chart | Source: TradingView
ETH / USD 4-hour chart | Source: TradingView
ETH / USD short term forecast
If the bears break the $ 2,000 mark, initial support will be at $ 1,925 (the level that helped price rally on May 23). This is followed by 1,888 USD (Fib 0.886 & 200-day MA), 1,800 USD and 1,625 USD (Fib extension 1.272).
On the flip side, the initial resistance is at $ 2,200. This is followed by $ 2,340, $ 2,400, and $ 2,500 (20-day and 50-day MA).
The daily RSI is currently at its lowest level since the May crash and is expected to decline, suggesting the downside momentum is picking up. There is some hope on the H4 chart as some bullish divergences emerge.
ETH / BTC – downward trend continues and calls for support
- Major support levels: 0.06 BTC, 0.0585 BTC, 0.056 BTC.
- Key Resistors: 0.063 BTC, 0.065 BTC, 0.068 BTC.
As for the BTC pair, the bulls are trying to defend the 0.06 BTC support. Sellers penetrated the 0.0628 BTC support last week, but buyers set 0.061 BTC as the next level of support.
As the downward momentum in the market increases, this support could be broken and ETH is likely to drop below 0.06 BTC. The next level of support is the late May low at 0.056 BTC.
ETH / BTC daily chart | Source: TradingView
ETH / BTC short term price forecast
Below 0.061 BTC, the initial support is at 0.06 BTC. This is followed by 0.0585 BTC (1.272 Fibonacci expansion), 0.056 BTC, 0.0541 BTC (April 2018 low) and 0.0529 BTC (100-day MA).
On the other hand, the first resistance is at 0.063 BTC. This is followed by 0.065 BTC, 0.068 BTC (50-day MA) and 0.07 BTC.
The RSI is also in a bearish zone but is gradually sloping up. This could be the first sign that bearish momentum is cooling off. However, it could also indicate that the bears are taking a short-term hiatus before increasing their selling pressure. Only time will tell if the RSI will drop below the marked trend line.
According to Cryptopotato