• Ethereum price could be rejected by a critical resistance barrier. 
  • A spike in selling pressure could see Ether as low as $2,100. 
  • Investors may take advantage of the downswing to buy Ether at a discount allowing prices to rebound. 

Ethereum seems to be trying to break through a crucial area of resistance. Failing to do so could lead to a steep correction. 

Ethereum price surrenders to the bears

Ethereum price is facing its second rejection at the hands of the 50-day moving average at $2,839. If a similar turn of events were to unfold, ETH could be headed toward the demand zone that extends from $2,153 to $1,730.

While this would be an extremely bearish case, the 100-day moving average at $2,304 will be the first pitstop for sellers or an entry point for buyers.

Failing to hold above this barrier would drag the Ethereum price down to the weekly open at $2,101.

ETH price is optimistically looking at a 15% drop to $2,304, but under dire circumstances, this crash could extend to $2,101. Ethereum will likely begin a bullish reversal after retesting this support level or briefly dipping below it.

ETH/USD 1-day chart

ETH/USD 1-day chart

On the flip side, if Ethereum price continues to surge above the 50-day moving average at $2,839 and produces a decisive daily close above $3,117, it would invalidate the bearish thesis. In this newly developed narrative, ETH could rally by 10% to test the swing high at $3,441 set up on May 19.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Sui bulls eyes for a new all-time high of $6.35

Sui bulls eyes for a new all-time high of $6.35

Sui price recovers most of its weekly losses and trades around $5.06 at the time of writing on Friday. On-chain metrics hint at a rally ahead as SUI’s long-to-short ratio reaches the highest level in over a month, and open interest is also rising. 

More Sui News
Bitcoin Weekly Forecast: Room for a recovery or continuation of the pullback?

Bitcoin Weekly Forecast: Room for a recovery or continuation of the pullback?

Bitcoin’s price slightly recovers and trades around $94,700 on Friday after declining nearly 6% earlier this week. US Bitcoin spot Exchange Traded Funds data shows signs of mild recovery, with a total net inflow of $462.2 million until Thursday.

More Bitcoin News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: All hints for a continuation of the correction

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: All hints for a continuation of the correction

Bitcoin retests its key support level of $92,493; a firm close below it could continue its ongoing correction. Ethereum price closed below its crucial support level of $3,236, suggesting the continuation of the pullback.

More Cryptocurrencies News
XRP funding rates flashes negative, eyes $2.17 following 4% decline

XRP funding rates flashes negative, eyes $2.17 following 4% decline

Ripple's XRP declined 4% on Friday following a decline in its funding rates. The remittance-based token could decline to test the $2.17 support level if the crypto market decline extends.

More Ripple News
Bitcoin: Room for a recovery or continuation of the pullback?

Bitcoin: Room for a recovery or continuation of the pullback?

Bitcoin’s (BTC) price slightly recovers and trades around $94,700 on Friday after declining nearly 6% earlier this week. US Bitcoin spot Exchange Traded Funds (ETF) data shows signs of mild recovery, with a total net inflow of $462.2 million until Thursday. A 10xResearch report released this week projects Bitcoin’s price action for the upcoming major events in January. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP