- ETH likely to end with modest gains despite plunge from weekly high of $2,774
- The ETH/USD exchange rate is $2,580, up nearly 1% in the last 24 hours
- ETH pledges in Ether 2.0 contracts have passed the $10 million mark
The entire cryptocurrency market fluctuates between panic selling and buying on the downside, and remains sensitive to geopolitical developments. Ether remains under pressure after further heavy buying on the downside as more and more investors hold on to their gains. ETH is likely to end with a small gain despite falling from its weekly high of $2,774 to the previous day's low of $2,523. ETH/USD recovered some of yesterday's market losses and could extend its rally to $2,700 in the next session. Buyers at lower levels may enter the pair from current levels in anticipation of the upcoming rally. However, any such rally in Ether prices above $3,000 is likely to continue to end in profit-taking, making a sustained recovery very difficult. At the time of this analysis, ETH/USD was trading at $2,580, up nearly 1% in the last 24 hours as investors took advantage of the current decline to increase their long positions. According to IntoTheBlock, Ether has recently passed a major milestone. The amount of ETH pledged in the Ether 2.0 contract has surpassed the $10 million mark. This feat was made possible by the contribution of over 65,910 unique addresses, equivalent 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 Chart: Range ETH/USD Daily Chart
After recently encountering technical resistance near the $2,750 mark at the daily moving average (MA 50), Ether has started to retrace. In anticipation of the upcoming rally, expect low buyers to enter the ETH/USD pair at current levels. At this point, only a bearish break below the $2,500 support level would cause panic, bringing the Jan. 24 low back near $2,159.
The ETH/USD pair is positive only if it is trading above $2,700; the main resistance level is between $2,800 and $3,000. If ETH/USD falls below the previous day's low of $2,523, sellers may test the $2,500 and $2,300 support levels. Meanwhile, ETH remained at $2,500 for the fourth consecutive day, above the lows reached a month ago.
ETH/USD 4-hour chart: Ranging ETH/USD 4 hour chart
After MA 200 ($2,615) halted the rise in ETH/USD, the 2nd place. 2 The cryptocurrency is consolidating sideways. In terms of directional momentum, technical oscillators are sending mixed signals, while RSI seems to be struggling to break out of positive territory. In a bullish scenario, strong opposition could come from the MA 200 at the $2,800 level.
Otherwise, downside limits could start from $2,500 to $2,300 and sellers could steer the price to another consolidation. Ether is now hesitant to break above $2,700, although a break above the moving average (MA 50) could raise optimism to the upside. The pair is likely to consolidate around the $3,000 high before attempting to challenge the annual high of $3,894.
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