ETH technical analysis on the evening of January 23rd

Friday’s crash pushed ETH price below $2,500 and eventually hovered around $2,300 levels not seen since July 2021.

Major support levels: $2,300, $2,000.

Key resistance levels: $2,500, $2,750, $3,000.

Of course, this week’s market-wide bloodbath doesn’t exclude ETH, as the largest altcoin posted a daily close below $3,000 for the first time since late September. Additionally, slipped to lows of $2,300 at the peak of the crash.

As of yesterday, slowly recovering until it touched $2,500 – which used to be support but has now turned into resistance. After losing the $3,000 support level, ETH has entered a significant correction that could take months to recover.

Source: TradingView

Technical indicators

Volume: Volume hit very high levels during Friday’s sell-off, the bears are now in control.

RSI: The daily RSI is also falling in price, reaching 21 points. Similar to Bitcoin, the RSI is currently deep in the oversold territory. Prices could recover to some slight relief but the end of the medium-term correction is unlikely even if it does.

MACD: The daily MACD quickly entered a bearish zone with the histogram and moving averages extending into the negative. Reversals seem unlikely in the short term as sellers completely control the market.

Source: TradingView

Currently, the trend of ETH is declining. After a collapse of the $3,000 support, ETH entered an intense correction.

Short-term price prediction for ETH

The end of the correction is unlikely anytime soon and any recovery rally will be temporary as ETH searches for a bottom. Till found, if $2,300 fails to hold, next support lies at $2,000. The next major resistance is $2,500 and the September low is $2,750.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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