ETH Price Prediction: Will Ethereum Price Lose $1500 Support Amid Market Correction?
ETH Price Prediction: The last two weeks downfall in the Ethereum coin price is governed by a falling channel pattern. During the correction phase, ETH’s price lost 9% and is currently trading at $1572. However, until this pattern is intact the coin holders can expect a steady downtrend which could plunge this altcoin below the $1500 mark. Therefore, is it safe to hold now?
Key Points:
- A potential bullish breakout from the channel pattern may release the trapped bullish momentum in Ethereum
- The Ethereum Fear and Greed Index at 52% indicates the market sentiment is at a neutral phase.
- The intraday trading volume in Ether is $9.9 billion, indicating a 35% gain.
Source- Tradingview
The ongoing correction phase in the Ethereum coin price continues to resonate within the two downsloping trendlines of the aforementioned channel pattern. Today, the coin price witnessed a sudden downfall of 4.65% market value and plunged to the pattern’s lower support.
This sudden sell-off could be linked to a massive gap down in a crypto-focused bank Silvergate stock price on March 2nd. However, the ETH price retest to the lower support trendline encourages a temporary bullish pullback before the prevailing downtrend continues.
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Though this pattern leads to a carry directional downtrend, in theory, it is known to trigger a directional uptrend upon the breakout of its resistance trendline. Therefore, a 4-hour candle closing above the overhead trendline will accelerate the buying pressure and encourage bulls to rechallenge the last swing high resistance at $1725-$1715.
Anyhow, this ongoing bearish correction phase is part of a bigger chart pattern called megaphone. Thus, the falling ETH price must be chasing this pattern’s lower support trendline is near the $1450 level. Here is how this new chart may influence the Ethereum coin’s future price.
Technical Indicator
EMAs: with the recent downfall the Ethereum price nosedive below the 200 EMA of the 4-hour time frame chart, This breakdown gives additional confirmation for a prolonged correction phase.
RSI: the RSI slope wavering near the 34% mark indicates the bearish sentiment is driving the ETH price.
Ethereum Coin Price Intraday Levels-
- Spot rate: $1564
- Trend: Bearish
- Volatility: Medium
- Resistance level- $1725 and $1788
- Support level- $1500 and $1420
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Brian Bollinger
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