• Ethereum price makes a U-turn and is set to make new lows for the week.
  • ETH price sells off as markets focus back on recession fears, with oil providing the canary in the coal mine.
  • Expect a drop back to $936.40 with $830.93 as a fail-safe floor in case pressure mounts further.

Ethereum (ETH) price signals that the promised turnaround is not far off now. In itself, the fact that for two consecutive days, ETH price has not been able to close near $1,200 is already a clear signal that a turnaround is set to happen, as bears used bulls’ failed attempts to run price action into the ground. To make matters worse, global markets look to have assessed that the recovery from Tuesday was enough for now, and are erasing those gains as we speak. This will add to the ETH’s headwinds and probably trigger a leg lower towards $936.40 on the monthly S2 support level.

ETH price on brink of collapse

Ethereum price looks to be going nowhere and, in the meantime, is trapping bulls that tried to run up price in a breakout trade. Despite clear warnings from the current backdrop, plenty of traders are set to get axed and stopped out on their trading plan to pre-position for a long-term uptrend. Inadvertently, their poor judgement and timing is why ETH price is now slipping, as their stop loss sell orders are creating an overdemand to sell ETH, thus triggering more downside pressure. 

ETH price could slip below $1,000 towards the monthly S2 support level at $936.40. That alone already accounts for 17% losses. If bears are so forceful in their attempts to run price action further down, expect to see $830.93 step in as a fail-safe floor.

ETH/USD daily chart

ETH/USD daily chart

Alternatively from the bullish perspective, the Relative Strength Index (RSI) is still trading oversold but is starting to flatline, which points to the fact that bulls are very much present and willing to buy into price action. It is possible some depressurization will happen again, and ETH price could still hit $1,200, or $1,243.89 to the upside.


 


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

Bitcoin Weekly Forecast: Further upside likely after hitting new all-time high

Bitcoin Weekly Forecast: Further upside likely after hitting new all-time high

Bitcoin (BTC) surged more than 10% this week, hitting a new high of $76,849 on Thursday, buoyed by the crypto-friendly candidate Donald Trump’s victory in the US presidential election.

More Bitcoin News
Cardano breaks above descending trendline, eyes April high as bullish momentum builds

Cardano breaks above descending trendline, eyes April high as bullish momentum builds

Cardano extends gains on Friday, following a close above a descending trendline the previous day. Technical indicators and on-chain data show bullish momentum, suggesting a rally ahead.

More Cardano News
Top 3 Price Prediction: BTC touches new all-time high near $77,000 following Fed rate cut

Top 3 Price Prediction: BTC touches new all-time high near $77,000 following Fed rate cut

Bitcoin price rallied and reached a new all-time high of $76,849 following the US Federal Reserve’s 25 basis point rate cut. Ethereum and Ripple followed suit and closed above their key resistance levels, hinting at a possible rally ahead.

More Cryptocurrencies News
Bitcoin, crypto market remain in uptrend following 25 bps Fed rate cut

Bitcoin, crypto market remain in uptrend following 25 bps Fed rate cut

Fed Chair Jerome Powell stated that the FOMC lowered the Fed funds rate by 25 basis points. The rate cut comes after Bitcoin reached a new all-time high price upon Donald Trump's election victory.

More Bitcoin News
Bitcoin: Further upside likely after hitting new all-time high

Bitcoin: Further upside likely after hitting new all-time high

Bitcoin (BTC) surged more than 10% this week, hitting a new high of $76,849 on Thursday, buoyed by the crypto-friendly candidate Donald Trump’s victory in the US presidential election.

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