Panic Selling Can Cause Ethereum Prices To Fall Beyond Critical Levels.

Panic Selling Can Cause Ethereum Prices To Fall Beyond Critical Levels.

2022-01-08 | Daniel Smith

Panic Selling Can Cause Ethereum Prices To Fall Beyond Critical Levels.

Bitcoin has dropped over 19 percent from its limited spectrum highs of $52k, and Ethereum has dropped roughly 23 percent from its local highs of $4121. Throughout last week, Ethereum purchasers fought valiantly but finally failed, to break beyond the $3800 barrier. This effort was rebuked emphatically, and Ethereum fell under a further level of demand, this time at $3300-$3400.

The $3800 region, as well as the $3770 support level, were crucial marks for Ethereum, however, the price has just crashed through both levels. This was --followed by Bitcoin bursting through below the limited range lows of $45.8k.

In September 2021, Ethereum traded for a week as well as a half between $3157 and $2800 before resuming its increasing trend.

Depending on an ETH rise from $1706 to $4868, the 50 percent Fibonacci retracement level appears to have shifted from support to resistance. On significant trading volume, the demand region at $3300 (cyan box) was breached, as well as a bearish replay may witness ETH fall.

The shortened Fib levels (white) identified $3136 as well as $2928 as extension levels wherein ETH might likely arrest its downward trend. The $2928 level intersected with the last pair of retracement levels ($2913), and also upper period support at $2990 and $2823.

What Can We Expect Next?

eth

ETH/USD 1 DAY PRICE CHART: SOURCE - COINMARKETCAP.COM

The RSI fell under 20 the day as well as produced a higher low a few hours ago, whilst the price produced a lower low. This isn't really a bullish divergence since the time duration there were 23 periods, which was more than 14.

The OBV was steadily declining, showing that selling volume was driving the ETH rally. The Supertrend gauge also displayed a sell signal, indicating that the $3300 level would be an excellent opportunity to begin solid R: R shorts.

Ethereum Price Assumption For January 2022

The set of major levels between $2800 and $2900 indicated solid support for ETH. The reversal of $3300 from demand to supply is possible in the short future, and Ethereum might retest $3300 and dip around $2800-$2900 in the quest for demand during the following few days.

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