Ethereum (ETH) tends to retest the support of $1075
Ethereum is considered a benchmark for the market movement after BTC to ascertain whether it’s a good time to enter into cryptocurrencies or not. The volatile price action in ETH charts showcases a complex road ahead in the prospects. While smart contacts and the use of blockchain are on the rise, the outlook and applications of cryptocurrencies have become clear to users. The current movement of prices in leading hype coins showcases a similar trend we witnessed in another set of disrupting technology in early 2000, the internet.
Just like the dot com bubble, the crypto bubble seems to have burst, which indeed would be a positive element moving forward. The price action of Ethereum will be heading towards a positive direction as the outlook is strong, but the movement towards proof of stake seems to have dulled the buyers’ interest as ETH carries a higher storage value in that sense.
The result of this movement would take months to come to light, if not years, and we expect a decent consolidation of the prices in the coming months. Market capitalization for ETH holds above 143 billion, but the decline in value has been more than 65% on a year-on-year basis.
Ethereum Price Analysis
Ethereum token is facing severe backlash since failing to sustain even the 100 EMA curve at the beginning of November 2022. The overall negative sentiment after the entire FTX debacle has left investors in a volatile state. The buy-on-dip strategy famous for cryptocurrencies has turned into sell and exit mode for newcomers.
Assessing the inclination of traders with technical inputs and data, the buying sentiment seems to be heavily hit by a lack of volume action. This price action indicates a wait-and-watch strategy being applied by investors who are not sure of the crypto movement in the short term. The volumes, despite being lower, are not at an all-time low, but fair close resemblance during the negative cycle.
MACD delivered a bullish crossover pattern, but RSI showcased a dip in buying sentiment as a new resistance is being developed near the $1230 range. The rejection during the last weekend, followed by a negative movement to the tune of 2% today, showcases a buying opportunity near $1100. The outlook for the token seems to be negative as its trading even below the 50 EMA curve. For more in-depth projections about the Ethereum price, click here.
Weekly charts confirm the price trend analysis for a long-term impact. The outlook of the token seems to have met its match, with resistance being developed with a declining trendline. The resistance has developed near the $2000 mark, with support being available at $981.
Since the price of Ethereum seems to be closer to the support level, a breakout is expected to end in a rally towards $2000, which would satisfy the expectation and create a rally. Both the technical indicators are fairing in a consolidative stance during this phase.
