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Ethereum Price Analysis: ETH Facing Critical Support Ahead of the New Week

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Ethereum Price Analysis: ETH Facing Critical Support Ahead of the New Week

ETH had seen a difficult weekend so far, unable to move away from the critical support at $2.5K. The overall crypto market sentiment is slightly bearish after Bitcoin got sharply rejected below $40K.

Key Support levels: $2,560, $2,330

Key Resistance levels: $2,800, $3,000

Since ETH got rejected at the $3,000 resistance level, the price quickly dropped towards the key support at $2.5K. The latter was the daily low in the past three days – Friday, Saturday, and Sunday.

So far the key support level held well and buyers managed to step in and prevent a further drop. However, in case of a breakdown, we can expect ETH to quickly reach the next major support at $2.3K, which is February’s low.

Chart by TradingView

Technical Indicators

Trading Volume: The volume almost disappeared over the weekend. ETH saw a massive decrease between Wednesday and Friday; however, the volume wasn’t significant.

RSI: The daily RSI made a lower high which is a bearish pattern. If the price continues to decline, the RSI will likely make a lower low as well, something that would place ETH in a clear bearish trend.

MACD: The daily MACD just did a bearish crossover today. This is bad news for bulls and may anticipate further losses in price in the coming week.

ETHUSD_2022-03-06_16-54-05
Chart by TradingView

Bias

The bias for ETH is neutral, as long as the key support at $2,500 holds.

Short-Term Price Prediction for ETH

ETH is looking weak, and the price action on Monday will be decisive on how the coming week will be for the second-largest cryptocurrency. If ETH fails to hold at the key support, it can easily fall to $2,300 or even lower.

Source – Cryptopotato.com

Written by: Duo Nine

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