The Ethereum price has taken an unexpected tumble over the past 24 hours and fell by around 8% to the $2140 mark. Previously it seems that bullish pressure was taking the world’s second-largest cryptocurrency to the expected resistance level of $2600. However, selling pressure kicked in and the price immediately capitulated to the $2140 mark and the outlook is looking extremely bearish. The whole market is currently in decline with Bitcoin also dropping below the important $33,000 level.
Short Term Forecast For Ethereum Price: Bears Re-enter The Market
After having been rejected at the $2400 level, Ethereum has started a worrying descent to the psychologically significant $2000 mark. It is currently trading between the $2140 and $2150 levels although support appears to be holding at the $2100 mark. This decline was not expected and could be due to the continuous FUD about regulations and clamping down on crypto holdings. Other ERC-20 based tokens and exchanges have also seen big declines over the past 24 hours.
The immediate outlook for Ethereum appears rather bleak although it could also present a good buying opportunity. If the $2100 level does not hold, then a further descent to the next support level of $1800. This could provide an opportunity for buyers to enter the market and a rebound could also be possible at this point.
The 6% drop in Ethereum could also be a prelude to a bearish forecast which predicts a downswing to the $1909 mark. However, the correction may also settle between the $2041 and $2106 level. A bullish scenario would then push the price up to the next targets of $2460 and $2640 levels. More bullish momentum would then push the price up over 40% to just under the $3,000 mark. It all depends upon the strength of the bulls.
For the bullish reversal to happen, ETH will have to stay above the low range zone price of $2040. If this level is breached, then the price might descend to the next support level of $1910. Further selling pressure could then grip the market with the price descending to the $1730 mark which would also signify a 9% crash.
Long Term Price Forecast For ETH: Bulls Should Come To The Rescue
Although the current situation appears rather bleak for Ethereum hodlers, this could soon change drastically. If the support level of $2040 holds, then one could expect a quick ascent to the $2400 mark followed by an equally quick leg up to the $2600 level. The next logical target for Ethereum would be the $3000 mark but that could be some weeks away. The next few days could be interesting ones for the Ethereum price.
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Gerald Fenech
