Ethereum Price Prediction: The altcoins market is experiencing a phase of correction amid resistance faced by Bitcoin at the $38,000 level. Ethereum, the second-largest cryptocurrency by market capitalization, has not been exempt from this trend as It recently underwent a sharp reversal from the $2,136 mark. The coin price witnessed a 10.7% drop in its market value over the past week, bringing it to the current trading price of approximately $1,945. Will this correction be extended further?
Will ETH Price Revist $1700?
- The $1900 and $1830 are strong support amid the current correction.
- The Ethereum price is prevented from a major downfall until the two trendlines are intact.
- The intraday trading volume in Ether is $12.6 Billion, indicating a 16% gain.
Source- Tradingview
The Ethereum price showed notable growth in October and early November, rising from $1,522 to a high of $2,137, marking a 41% increase. This bullish recovery was significant as it surged above the crucial daily Exponential Moving Averages (EMA) of 20, 50, 100, and 200, reflecting an early sign of trend reversal.
However, after forming a local top at around $2,137, the coin entered a minor correction phase. Currently trading at $1,341, the buyers are trying to sustain above the 32.8% Fibonacci retracement level.
Until the price is still above the 50% retracement level($1830), the overall bullish trend may still be intact. If the ETH price sustains above the $1,830 mark, it could potentially rebound strongly, and continue its bullish trajectory to $2,240, which corresponds to the resistance level of a rising wedge pattern.
A breakout above this barrier could signify a robust bullish trend ahead.
Is ETH Poised for Further Correction?
The Ethereum price movement is currently confined within the converging trendlines of a wedge pattern, suggesting a potential for a slow yet steady recovery. However, as the price approaches the upper trendline of the wedge, there may be an increase in selling pressure, particularly around the $2200 mark. Historical trends indicate that retests of this upper trendline often lead to significant corrections, potentially driving the price down to the lower trendline of the wedge, which could mean a correction towards the $1,700 level.
- Exponential Moving Average (EMA): The 20-day EMA is providing dynamic support to the declining Ethereum price.
- Moving Average Convergence Divergence (MACD): A bearish crossover between the MACD line and its signal line suggests a correction sentiment in the market.
