- Ethereum price is retesting the $1200 support zone.
- Ethereum price is officially a deflationary token, according to the recent tapering of the supply.
- Invalidation of the downtrend requires a breach above $1,300 for confirmation.
Ethereum price is facing significant bearish pressure going into the third trading week of November. After a 35% decline witnessed earlier this month, the bulls produced a countertrend rally with far less luster than previous uptrend moves. If market conditions persist, ETH could fall back to the $1,000 price level.
Ethereum price remains submerged
Ethereum price shows signals that warrant concern as the bears attempt to decimate the $1,200 support zone. The recent move south was catalyzed by a rejection from the 8-day exponential moving average (EMA). On smaller time frames, the ETH price looks completely in control of the bears as the Relative Strength Index (RSI) remains in oversold territory.
Ethereum price currently auctions at $1,209 as a quick rebound has occurred since the bears breached the $1,200 level. Still, the Volume Profile Indicator suggests sidelined bulls are uninterested in the current discounted ETH price, which could cascade into further sell-offs in the future.
ETHUSDT 8-hour chart
The ETH price decline comes at an interesting time in the market as many crypto advocates speculate better days will come for the decentralized smart-contract token. FXStreet's News Reporter Ekta Mourya recently noted that ETH's supply has significantly fallen post-merge. According to the article, the altcoin’s energy consumption is down 99%. This is a positive light in the crypto space that will hopefully suffice in combatting the White House’s current and future climate and energy implications involving cryptocurrencies.
Still, bounces cannot be ruled out as invalidation of the bearish remains above $1,300 liquidity levels based on previous outlooks. If the level is tagged, ETH could re-route north and rally towards $1,800 and potentially $2,000. Such a move would result in an 80% increase from the current Ethereum price.
In the following video, our analysts dive deep into the price action of Ethereum, analyzing key market interest levels. -FXStreet Team
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
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
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.