When Vladimir Putin invaded Ukraine on February 24, the price of Ethereum surged. Despite the current market attitude, there is a lot of evidence that ETH is still in trouble.
At the moment, support levels for Ethereum are being tested
An immediate 28 percent drop in ETH’s price to $2,055 is now possible after its 12-hour chart broke below the rising wedge. After US Vice President Joe Biden announced further sanctions against Russia, Ethereum’s price fell to a swing low of $2,301 on February 24. There are still more sellers than buyers, according to the Arms Index (TRIN), which measures general investor mood.
The 61.8 percent Fibonacci retracement level at $2,615, followed by the 78.6 percent Fibonacci retracement level at $2,398 will serve as the first line of defense for buyers. Eventually, the price of Ethereum may fall to $2,160, which would be the lowest point since January 22, when it fell to a low of $2,300.
An increase in the number of sell orders might send Ethereum’s price down to the $2,055 objective. It is possible, though, that the price of Ethereum might rise to as high as $2,773 if demand for the cryptocurrency continues to grow.
There is a good chance that Ethereum will reach $2,851 in the near future if buyers continue to flood the market. This is where the 50-hour SMA, 100-hour SMA, and the 38.2 percent Fibonacci retracement level cross. The 23.6 percent Fibonacci retracement level at $3,015 may encourage buyers to reach the Momentum Reversal Indicator (MRI) resistance line at $3,139 before attempting to breakthrough.
- Although Ethereum’s price has recovered somewhat, a bearish target remains on the horizon.
- Technical analysis reveals that the market is dominated by sellers.
- It’s possible that even if purchasers enter the market, Ethereum will still run into several problems.