After a positive few days, it seems that the Ethereum price is once again gripped in a downward spiral where it is expected to test the $2,000 support level again. ETH is currently trading just above the $2100 level at the moment, and movement is rather limited. If you’re looking to buy some Ethereum have a look at this How To Buy Cryptocurrency beginners guide.
The Ethereum price reached the $2300 level on 6 July but has been on a downward spiral since then. It has lost around 10% of its value so far and after a small bump yesterday, it is back to testing the $2100 level. If the price breaks below that, a descent all the way to the $1700 mark could be possible although a considerable sell off would have to occur.
Short Term Ethereum Price Forecast: Testing Support Levels?
The Ethereum price seems stuck in a mire but it could also provide a good buying opportunity. Have a look at these top cryptocurrency brokers if you’re taking the plunge. It seems that for the next few days, Ethereum will continue testing these support levels before making a break either way.
However, it is more likely that the Ethereum price will continue to drop. After having reached the 200-day SMA of $2390 on July 6, a rejection took place. The price quickly fell to the $2160 levels with the Relative Strength Index also confirming muted volumes of sorts. This led to considerable bearish pressure on ETH.
The decline on June 9 seems to signify another 20% drop where the level of $1842 could be tested. The February high of $2041 is also a distinct possibility although, for the time being, the price seems to be well supported at the $2100 level. If the low of $1840 is reached, then a sell-off could occur with more long-term implications for the Ethereum price.
Long Term Price Forecast For ETH: Not Looking Good
Although there are several predictions indicating that the Ethereum price will continue to recover, the future is not looking good. The $3000 level seems elusive and in any case, Ethereum would have to overcome resistance at the $2400 and $2600 levels first, something which it is still very far from doing.
If, on the other hand, Ethereum breaks through the $1840 barrier, then the bearish thesis would come into play. A brutal descent to the $1500 level could easily happen. The next few days will be interesting to demonstrate either thesis but further declines seem likely, at least in the short term.
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Gerald Fenech
