The market has fallen sharply over the weekend and now ETH is on course to retest the $2,500 support. According to CoinGecko, ETH is down 4% over the past day and down 18% since Thursday.

• Major support levels: $2,500, $2,200
• Major Resistances: $2,800, $3,000

With the MACD forming a bearish cross and the price falling, the outlook for ETH is not good. The rejection by the $2,800 resistance level added selling pressure. ETH is currently heading towards the critical support at $2,500.

If this breaks, ETH could retest the January lows around $2200.

Source: TradingView

Technical indicators

Trading Volume: After five days of red, selling pressure was particularly strong last Friday when the price fell below $2,800, which is a bearish sign.

RSI: The daily RSI is falling in line with the recent price action. The RSI is at 38 at the time of writing and there is still plenty of room to turn lower until the RSI reaches the oversold territory (below 30).

MACD: The daily MACD made a bearish cross yesterday and today’s price action proves it. This downward momentum is likely to continue for some time.

Source: TradingView

Perspectives

The current trend of ETH is declining. So far, the $2,800 – $3,000 support zone has been broken.

Short term price prediction

ETH is in a downtrend and seems poised to retest prices not seen in the past month. The first line of defense is at $2,500, the next at $2,200. If the latter is broken, then will record a new low since July 2021.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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