Key Support levels: $3,300, $3,000
Key Resistance levels: $3,600, 4,000
Unfortunately, ETH broke below the key support at $3,600 yesterday and invalidated the bullish falling wedge discussed previously.
The price fell all the way to the $3,300 support where it is currently found at the time of this post. With this drop, the $3,600 level has turned into resistance, and ETH looks very weak. Should the correction continue, then the next support level is found at $3,000. However, it’s worth noting that the zone between $3,300 and $3,400 also contains the MA200, which should provide considerable support.
Trading Volume: The volume during this drop was serious. This shows that bears mean business.
RSI: The daily RSI has made a lower low and is approaching the oversold area. With this drop in price, the RSI continues to be bearish.
MACD: After a failed attempt to complete a bullish crossover, the daily MACD continues to fall, and the momentum is increasing on the way down, as indicated by volume and MACD histogram. Until this is reversed, ETH is unlikely to stop the downtrend.
The bias for ETH is bearish. The break below $3,600 was a clear sign that the cryptocurrency was going lower.
Short-Term Price Prediction for ETH
After ETH failed to rally beyond $3,800, sellers took full control of the price action. The support at $3,300 seems to hold for now, but market confidence is weak. The resistance at $3,600 will likely not be tested any time soon as ETH struggles to stop the downtrend. Should sellers continue their assault, then ETH can go to $3,000 next.
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Cryptocurrency charts by TradingView.