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Ethereum Price Analysis - ETH Continues Battle To Defend $3,000, Can The Bulls Hold?


coincodex.com 21 September 2021 16:28, UTC
Reading time: ~4 m

Key highlights:

  • Ethereum is now down by a sharp 8.8% over the past week of trading as it battles to stay above $3,000
  • The cryptocurrency did spike as low as $2,760 today, but the bulls regrouped to bring the fight back above $3,000
  • Against Bitcoin itself, Ethereum fell beneath the 50-day MA yesterday but rebounded from support at ₿0.0687 (.786 Fib Retracement) to reach the current ₿0.07 level
Ethereum price $3,050
Key ETH resistance levels $3,075, $3,200, $3,260, $3,340, $3,425
Key ETH support levels $2,890, $2,910, $2,800, $2,760, $2,678

*Price at the time of publication


Like the overall market itself, Ethereum has struggled this week after dropping by almost 9% over the period. The coin was trading above $3,600 last week but would collapse yesterday as it fell beneath the 50-day MA and plummeted into the support at $2,980 (downside 1.272 Fib Extension). Today, the drop continued as ETH spiked as low as $2,760 before recovering back above $3,000.

Before September started to trade, Ethereum was trending in a very promising direction. The coin was trading inside an ascending price channel which allowed it to spike above $4,000. Unfortunately, during September, it seems that the market has decided to pull back as it broke beneath the previous ascending price channel to reach as low as $2760 today.

The drive higher was primarily driven by the Ethereum London Hard Fork, which saw the introduction of EIP-1559. So far, the network upgrade has resulted in over $1 billion worth of ETH being burnt.

The introduction of EIP-1559 saw a portion of the “base fee” which is paid to miners to be burnt. Since the upgrade came into play, a total of 337,250 ETH has already been removed from existence. 

Ethereum remains the second-ranked cryptocurrency and currently holds a market cap value of around $358 billion. 

Let us continue to take a look at the markets and see where they might be heading.

Ethereum price analysis

What has been going on?

Taking a look at the daily chart above, we can clearly see ETH breaking toward the downside of the ascending price channel that it was trading inside during September. Since breaking toward the downside of the price channel, ETH has been on a steady decline.

The cryptocurrency rebounded last week to reach above $3,600 but would quickly reverse from there as it started to head lower again. By the end of the weekend, ETH was battling to hang above the 50-day MA at around $3,200.

Yesterday, ETH smashed beneath the 50-day MA as it broke beneath $3,200 to reach as low as $2,910 (.5 Fib Retracement). It did recover by the end of the day to close the daily candle at $2,980 (downside 1.272 Fib Extension).

Today, we can see that ETH spiked much lower beneath $3,000 as it reached as low as $2,760. It has since rebounded and is back above $3,000.

Ethereum price short-term prediction: Neutral

The break beneath the 50-day MA at around $3,270 has turned the market neutral again in the short term. A break beneath $2,600 (200-day MA) would turn the market bearish, and it would need to break back above $3,500 to turn bullish again.

If the sellers push back beneath $3,000, the first support lies at $2,910 (.5 FIb Retracement). This is followed by support at $2,800, $2,760, $2,700 (100-day MA), $2,632 (.618 Fib Retracement), and $2,600 (200-day MA).

Where is the resistance toward the upside?

On the other side, the first resistance lies at $3,075 (bearish .236 Fib Retracement). This is followed by $3,200, $3,270 (bearish .382 Fib & 50-day MA), $3,340, and $3,425 (bearish .5 Fib Retracement). 

Additional resistance is expected at $3,582 (bearish .618 Fib) and $3,800.

ETH/BTC price analysis

What has been going on?

The situation is fairly similar for ETH against BTC as the coin struggles to hold above ₿0.07. The cryptocurrency had reached as high as ₿0.076 last week but quickly rolled over from there. By the end of the week, ETH was already beneath ₿0.072 as it battled to stay above ₿0.071. 

Over the weekend, ETH would break beneath ₿0.071 and would continue beneath the 50-day MA and support at ₿0.07 yesterday. Luckily, the coin bounced from ₿0.0687 (.786 Fib Retracement) and pushed back above ₿0.07 today. 

BTC/ETH price short-term prediction: Bullish

ETH is also considered neutral against BTC as it sits beneath the 50-day MA. The cryptocurrency would now need to break back above ₿0.076 to turn bullish again. It would need to continue further beneath ₿0.0659 (100-day MA) before being in danger of turning bearish in the short term.

If the sellers push lower, the first support lies at ₿0.0687 (.786 Fib Retracement). This is followed by ₿0.0682 (long term .5 Fib Retracement), ₿0.068, and ₿0.0675 (.886 Fib Retracement). 

Additional support can then be expected at ₿0.0659 (100-day MA), ₿0.0655 (.618 Fib Retracement), and ₿0.0647.

Where is the resistance toward the upside?

On the other side, the first resistance lies at ₿0.0705 (50-day MA). This is followed by resistance at ₿0.0711 (bearish .236 Fib Retracement), ₿0.072 (20-day MA), ₿0.0727 (bearish .382 Fib Retracement), and ₿0.074 (bearish .382 Fib Retracement). 

Keep up to date with the latest ETH price predictions here.


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