Ethereum Price Analysis – Will It Go Back To $1,000?

Ethereum Price Analysis – Will It Go Back To $1,000?

Ethereum Price Analysis

On Friday, ETH sank below $1,000 for the first time in a week amid the intensifying global cryptocurrency sell-off that transpired over the past couple of days. Its price even dropped to as low as $758 at one point, but it managed to bounce back to around $898, as of 2:30PM PST.

Now the question is whether this occurrence is a just temporary phenomenon or a sustained nosedive that’ll continue to wipe billions of dollars off the cryptocurrency market.

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To answer this, we need to take a look at a few technicals.

Source: Tradingview

Over the short term, we will probably see ETH ride off its lows for the day with a chance to go back to at least $900. Activities throughout the day indicate a support level of $880, and a bullish signal was sent when the five-day and 20-day moving averages crossed.

If ETH does move up, it’ll likely test a resistance of $920, and the next hurdle could be at $960. For it to go back to $1,000, investors will need to look at the price actions and whether these resistance levels hold. But if the first resistance level does not come off, then there exists a genuine possibility that the $880 support level could break down, and further declines are entirely possible.

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Using the MACD indicator, a bearish signal was relayed when the MACD line crossed over the signal line. Also, volume hasn’t really picked up as the day went by, which is a concern.

In summary, ETH investors should take note of the following:

  • Major support level — $880
  • Major resistance level — $920
  • Next major resistance level — $960
  • MACD indicator — entering bearish zone
  • Moving averages — bullish signal sent

Featured Image: Depositphotos/© Violka08

In addition to writing financial content and analysis, Jackson has worked as a business journalist at Stockwatch and research analyst at various organizations. He obtained his MA Economics from Concordia University in Montreal and BA Economics from the University of British Columbia, with special emphasis on environmental and industrial economics.

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