ETH Plunges Towards Key Support, Will the Price Surge?

ETH endured a tough weekend, failing to bounce off the critical support at $2.5K. The overall crypto market sentiment is bearish after Bitcoin’s strong rejection near $40,000.

• Major support levels: $2,560, $2,330
• Major Resistances: $2,800, $3,000

After ETH was rejected at the $3,000 resistance, the price quickly dropped to the key support at $2.5,000.

So far the key support level is holding well and the buyers have managed to step in and prevent further declines. However, in the event of a breakdown, we can expect ETH to quickly drop towards the next major support at $2.3k, the February low.

ETH/USDT daily chart | Source: TradingView

Technical indicators

Volume: The volume is almost gone by the end of the week. ETH saw a sharp decline from Wednesday to Friday; However, the volume is negligible.

RSI: The daily RSI has made a lower high, which is a bearish signal. If the price keeps falling, the RSI is also likely to make a deeper low and put ETH in a clear downtrend.

MACD: The daily MACD just made a bearish cross today. This is bad news for the bulls and more declines are likely in the coming week.

ETH/USDT daily chart | Source: TradingView

perspectives

ETH bias is neutral as long as the key support at $2,500 holds.

Short term price prediction

ETH is looking weak and Monday’s price action will determine what next week looks like for the second largest cryptocurrency. If ETH fails to hold the key support, it can easily drop to $2,300 or even below.

You can see the ETH price here.

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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.

SN_Nour

According to Cryptopotato

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