Ethereum price recovers but ETH expects a further drop in price

• Ethereum price is not out of the woods yet as a bearish target continues to be on the radar.
• A key technical indicator suggests that there are more sellers than buyers in the market.
• Ethereum may still face multiple obstacles if buyers enter the market.

Ethereum price has rebounded after the recent drop on February 24 while Russian President Vladimir Putin kickstarted its invasion of Ukraine. Despite the optimism in the market, several indicators suggest that ETH is not out of the woods yet.

Ethereum price test critical levels of support

Ethereum price has fallen below the rising wedge on the 12-hour chart on February 18, putting a 28% drop toward $2,055 on the radar. 

Ethereum price slumped to a swing low of $2,301 on February 24 and recovered by 13% following US President Joe Biden’s announcement of new sanctions on Russia.

However, the Arms Index (TRIN) which gauges overall investor sentiment suggests that there are still more sellers in the market than buyers.

The first line of defense for the buyers will appear at the 61.8% Fibonacci retracement level at $2,615, then at the 78.6% Fibonacci retracement level at $2,398.

ETH/USDT 12-hour chart

Ethereum price may slump lower toward the January 22 low at $2,300 before eventually reaching the January 24 low at $2,160.

An additional spike in sell orders may push Ethereum price toward the pessimistic target at $2,055.

However, if buying pressure increases, Ethereum price may target the 21 twelve-hour Simple Moving Average (SMA) at $2,773 next.

If buyers continue to enter the market, Ethereum price will aim for $2,851 next, where the 50 twelve-hour SMA, 100 twelve-hour SMA and 38.2% Fibonacci retracement level intersect.

An increase in bullish sentiment may incentivize the buyers to reach the 23.6% Fibonacci retracement level at $3,015 before attempting to reach the resistance line given by the Momentum Reversal Indicator (MRI) at $3,139.