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  • Ethereum price trades at $2,940 with a bullish bias, rising by less than 1% of the last 24 hours.
  • Ethereum faces stiff resistance around the $3,300 area.
  • The IOMAP shows that ETH sits on strong formidable support embraced by the 100-day SMA around $2,772.

Ethereum price is currently trading in the green at $2,940.42 within the confines of a descending parallel channel. The bulls have undone yesterday’s losses and are determined to undo last week’s loses triggered by Evergrande’s debt crisis as well as China’s crypto FUD.

Ethereum price has risen by less than 1% over the last 24 hours with a daily trading volume of around $16,703,884,805 which has declined by 2.39% over the same timeframe. ETH market cap now stands at $345,077,670,506.

Can Ethereum Price Bulls Hold On?

Ethereum price prediction is bearish as indicated by the governing chart pattern. ETH/USD has formed a descending parallel channel on the daily chart. A descending parallel channel is a significantly bearish chart pattern that is formed when an asset records lower highs and lower lows over an extended period of time suggesting that the bears are stronger than the bulls.

Note that as long as Ethereum continues to trade within the confines of the descending channel, the bearish leg is set to continue.

ETH/USD Daily Chart

Ethereum price Daily Chart
Ethereum price Daily Chart. Source: Tradingview

Ethereum’s bearish outlook is validated by the position of the Moving Average Convergence Divergence (MACD) Indicator below the zero line in the negative region. This suggests that the market momentum for the smart contracts giant’s token is negative at the moment.

Moreover, the position of the Stochastic Relative Strength Index (RSI) indicator at $35.37 indicates that the bears are in control of the Ethereum price.

Therefore, a daily closure above the $3,000 psychological level will bolster the bulls to push ETH to tag the $3,184 resistance level embraced by the upper boundary of the descending parallel channel. A clear bullish break out will be achieved when Ethereum breaks above this level.

This will propel the largest altcoin by market up outside the confines of the descending channel confirming the beginning of a bullish run.

Ethereum Price Faces Stiff Resistance Around $3,300

Ethereum’s rally could be curtailed by immense resistance around the $3,293 embraced by the 50-day Simple Moving Average (SMA).

According to on-chain metrics from IntoTheBlock’s In/Out of the Money Around Price (IOMAP) shows that this area is within the $3,197 and $3,287 price range where approximately 1.54 million ETH were previously bought by 1.32 million addresses. These investors might want to break-even curtailing any efforts to push Ethereum price past this level.

Ethereum IOMAP Chart

Ethereum IOMAP Chart
Ethereum IOMAP Chart by IntoTheBlock

On the flipside, Ethereum sits on formidable support around the $2,773 area embraced by the 100-day SMA. According to the IOMAP, this area is within the $2,846 and $2,932 price range where approximately 2.96 million ETH were previously bought by roughly 879,280 million addresses.

This support is strong enough of absorb any selling pressure threatening to push ETH lower.

However, if things go awry and the ETH bulls lose the support provided by the 100-day SMA, the Ethereum price may drop further to tag the 200-day SMA at $2,636. A drop further could see the bears pull Ethereum lower towards the $2,430 embraced by the lower boundary of the descending channel. This represents a 16% drop from the current price.

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