The overall crypto markets are fluctuating between panic selling and dip-buying and remain sensitive to geopolitical developments. Ethereum remains under pressure after further heavy dip-buying, as more investors hold on to their gains. ETH might close the day with slight gains despite crashing from a $2,774 weekly high to the prior day’s low of $2,523. The ETH/USD recovered some of yesterday’s market losses and might extend the rebound towards $2,700 in the next session. Dip-buyers are likely to enter the pair from current levels in anticipation of an upcoming rally. However, any such rise in Ether’s price above the $3,000 might continue to end in profit-taking, making a sustained recovery very difficult. At the time of this analysis, ETH/USD is exchanging at $2,580 and up almost 1% in the last 24 hours as investors use the current dip to increase their LONG position. According to Coincodex, Ethereum sentiment is currently neutral, with 17 technical analysis indicators signaling bullish signals and 13 signaling bearish signals. As per IntoTheBlock, Ethereum has recently passed a significant milestone. The staked sum of $ETH in the Ethereum 2.0 contract has crossed the $10 million barriers. This feat was made possible by the contributions of over 65,910 unique addresses, equating to 8.4% of the circulating supply.
Key Levels
Resistance Levels: $3,300, $3,000, $2,700
Support Levels: $2,500, $2,300, $2,000
ETH/USD Daily ChartAfter recently encountering a technical resistance around the daily moving average (MA 50) at the $2,750 mark, Ethereum has proceeded to retrace lower. In anticipation of a forthcoming rally, dip-buyers are expected to enter the ETH/USD pair at current levels. At this point, only a bearish breach below the $2,500 support level would be cause for alarm, bringing the January 24 low back into focus around the $2,159 level.
Only when the ETH/USD pair is trading over $2,700 is it positive; major resistance is found between $2,800 and $3,000. Sellers may test the $2,500 and $2,300 support levels if the ETH/USD pair goes below the prior day’s low at the $2,523 mark. Meanwhile, ETH is holding at $2,500 for the fourth day in a row, above the low levels, it reached a month earlier.
ETH/USD 4-Hour ChartAfter the MA 200 ($2,615) stopped gains on ETH/USD, the no. 2 cryptocurrency is moving sideways. In terms of directional momentum, the technical oscillators are sending mixed signals, while the RSI appears to be fighting to break into the positive zone. In a bullish situation, strong opposition might come from the MA 200 at the $2,800 level.
Otherwise, downside restrictions may begin from $2,500 to $2,300 where sellers may be able to direct the price to another consolidation. Ether is now indecisive about moving higher than $2,700, although a break above the moving average (MA 50) could improve upward optimism. The pair might consolidate around the high of $3,000 before attempting to challenge the yearly high of $3,894.
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