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.
Main levels of support: $2,560, $2,330
Key Resistance Levels: $2,800, $3,000
Since ETH was rejected at the resistance level of $3,000, the price quickly fell towards the key support at $2.5,000. The latter was the daily low for 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.
Technical indicators
Trading volume: The volume almost disappeared over the weekend. ETH saw a massive drop between Wednesday and Friday; however, the volume was not 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 made a bearish crossover today. This is bad news for the bulls and we can anticipate further price losses over the coming week.
Bias
The bias for ETH is neutral, as long as the key support at $2,500 holds.
Short term price prediction for ETH
ETH looks weak and Monday’s price action will be decisive for the week ahead for the second largest cryptocurrency. If ETH fails to hold key support, it can easily fall to $2,300 or even lower.
