ETH had a difficult start to 2022, falling nearly 20% in the first week of the year. The previous week saw a massive crypto sell-off, with ETH plummeting to $2,987 on Saturday before rebounding the $3K support level Monday. At the time of writing, it appears as though the price has established a local bottom above the psychological support level of $3,000. Following a wild week, ETH has found some stability near the $3,000 mark. The histogram shows that the selloff’s momentum is waning.
The daily relative strength index has entered oversold territory and is anticipated to curve upward during a relief rally. Keep a watch on Monday’s price action for clues as to what may happen next with ETH.
Key Levels for Ethereum
ETH had a tough start to 2022, dropping almost 20% in the first week of the new year, mirroring the broader bearish tone in the crypto markets.
Significant levels of support: $3,500 – $2,750
Significant resistance levels: $3,300–3,600
The previous week has seen a huge crypto drop, with ETH falling as low as $2,987 (Bitstamp) on Saturday before reclaiming the $3K support level today.
Last Wednesday, the market began a persistent selloff: ETH has seen four consecutive daily red candles, breaching major support levels of $3,600 and $3,300. These essential levels have now become a source of resistance.
At the time of writing, the price appears to have found a local bottom above the psychological support level of $3,000, and ETH may experience a temporary correction towards critical resistance levels, temporarily halting the selloff momentum.
If the $3K level is breached, the next significant support level to consider is September’s low, around $2,750.
Technical Indicators by TradingView Trading Volume: The selloff volume peaked on Thursday and has subsequently dropped, especially on Saturday.
This enabled ETH to ultimately reverse its downward trend on Sunday, just above $3,000 (as of now). Weekend price activity, on the other hand, should be taken with a grain of salt due to the fact that the majority of traders are away, as well as the worldwide markets, which also affect general mood.
Daily RSI has entered oversold territory and is likely to curve upward during a relief rally. This is not bullish yet, as it could be temporary in the event of a resurgence of sellers’ pressure in the coming week.
MACD: The daily MACD is negative, and the histogram indicates that the selloff momentum is beginning to wane. If this trend continues, ETH may attempt a pullback to the $3,300 level of resistance.
TradingView Trend Chart
The trend is pessimistic for ETH. Keep an eye on Monday’s price action as it will provide insight into what happens next with ETH.
Ethereum Price Predictions in the Short Term
After a tumultuous week, ETH has found some support near the $3,000 mark. This level must be vigorously guarded by purchasers; else, the altcoin market will implode. Confidence in support levels is low, especially after the price fell below important levels without a pullback last week.
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