Ethereum Price Prediction: ETH Plunges 2% As Analyst Highlights Potential Rally
The Ethereum price has plummeted 2% to trade at $3,503 as of 11:34 UTC, despite a 13% surge in trading volume to $16 billion. However, its market capitalization decreased 2% to $428 billion.
A crypto analyst, Tyler, has taken to his X account on social media, noting that Ethereum might be forming a buy model before it takes up for a rally.
Looking like price could be forming a buy model here, it looks like it wants another move down before expansionhttps://t.co/OTUhr9yJDE pic.twitter.com/0YEjdCHoWy
— Tyler (@4500px) June 21, 2024
Further, Ethereum’s Fear and Greed Index is signalling neutral, as it currently sits at 54.
Ethereum Fear and Greed Index is 54. Neutral
Current price: $3,485 pic.twitter.com/PGGZ6DsJKn— Ethereum Fear and Greed Index (@EthereumFear) June 21, 2024
The Fear and Greed Index is an indicator that analyzes and generates a number between 0-100. In that, 1 indicates extreme fear and 100 signals extreme greed. In a layperson’s language, extreme fear will drive down the share prices, and extreme greed will have a vice-versa effect.
Ethereum Statistical Data
According to Coinmarketcap data:
- Ethereum price now – $3,503
- Ethereum market cap – $428 billion
- Ethereum total supply – 122.2 million
- Ethereum circulating supply – 122.2 million
- Ethereum ranking – #2
The Ethereum price was on a downtrend from mid-March to mid-May. The $2,843 support zone allowed the bulls to push the cost to the $4,019 resistance zone. However, the bears had their way to the market and dropped the ETH price past the $3,600 mark, eventually falling below the $3,550 support level.
ETH’s price is trading with a bearish bias, consolidating within a falling wedge pattern. The formation of a falling wedge pattern suggests the potential for a bullish price reversal.
Ethereum Price Technical Outlook
Based on the outlook, the ETH bulls are pushing to defend the $3,417 support level. However, if the bears have control, the token could slide lower. The ETH trades above the 50-day and 200-day Simple Moving Averages (SMAs), with $3,454 and $3,012 as immediate support levels.
However, the Relative Strength Index (RSI) is diving from the 50-midline level as it hurtles toward the oversold region, currently trading at 47. In this scenario, the bulls have a chance to push the RSI above the 50 threshold. If the bulls initiate a buyback campaign, it could see the RSI hurtle to the 70-overbought region, indicating intense buying pressure. In a dire case, if the bears have their way, it could see the RSI sink towards the 30-oversold level.
Moreover, the Moving Average Convergence Divergence (MACD) indicator is currently bearish. The blue average line has crossed below the orange signal line towards the neutral level, suggesting a shift in momentum towards bearish conditions. However, the MACD is showing signs of recovery as it sways along the positive territory towards making a cross above the orange band.
Ethereum Price Prediction
The Ethereum price analysis on a daily chart timeframe indicates a bearish bias, as the bulls aim to push the price above the $4,019 resistance. They are targeting a price above their ATH of around $5,300.
The 50-day SMA trades above the 200-day SMA, allowing the bulls to buy more. If the bulls initiate a buyback campaign, using the 50-day SMA as their immediate support level, the ETH price could rally to around $4,400.
However, the RSI and MACD show that investors are selling more. This might lead to a slight retracement, with $3,012 as the support level, coinciding with the 200-day SMA. Increased bearish momentum could see the price reach around $2,849.
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Disclaimer: Cryptocurrency is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
Emmaculate Araka
Emmaculate Araka is a cryptocurrency writer with published works on Crypto2Community and other news sources. She is believer in the transformative power of crypto and the blockchain industry, conducting on-chain analysis, breaking down market-triggering events, and helping traders and investors benefit from expert technical price analysis. Emmaculate finds gratification in diving deep into the crypto space, earning herself significant knowledge and experience. She holds a Bsc. in Information Science, and outside work, Emmaculate loves reading novels and watching documentaries.
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