At the start of February, we saw the entire crypto market rebound sharply. Ethereum (ETH) was one of the key performers and at one point, even got closer to $4000. But it has been a sharp fall ever since. More importantly, ETH has fallen below the crucial support zone of $2800. So, how far can bears take this? Here are some highlights:
ETH was trading at $ 2734 at press time, down about 5% in the last 24 hours
ETH has also fallen below the crucial 20-day exponential moving average
It is likely that the coin will fall to its next support of $2400 in the coming days.
Data Source: Tradingview
Ethereum (ETH) – Price analysis and prediction
There is a big systemic risk in the crypto market right now due to the tensions between Ukraine, the West, and Russia. We are likely to enter a period of extreme market volatility in the coming weeks, at least until the crisis is resolved.
For this reason, it’s very difficult to make accurate technical predictions with such huge systemic risks hanging over the market. However, as of now at least, bears have the upper hand with Ethereum.
We expect the coin to fall towards $2400 before bulls try to find sufficient demand for some momentum. Besides, ETH still remains below the 20- and 200-day exponential moving averages, suggesting weakness. The relative strength index also shows a bearish outlook.
Should you consider Ethereum (ETH) right now?
With a short-term bearish outlook, this may not be the right time to get into Ethereum (ETH). In fact, there is a real chance of buying in at a very good discount since the price is expected to fall further.
The $2400 mark will be the perfect entry point for both short- and long-term buyers. Short-term buyers should hope to exit once ETH bounces back to $2800.