Ethereum Price Analysis: ETH Collapses by 10% Amid Broader Market Downturn

Key Support levels: $2,200, $1,900

Key Resistance levels: $2,500 

ETH broke the support at $2,500. This opens the way for a potential drop towards $2,200, which is the first serious level to halt any further declines. The previous support at $2,500 has turned into resistance, and the market outlook is grim. The US stock market is due to open later today and may pull ETH lower still.

Chart by TradingView

Technical Indicators

Trading Volume: Today’s volume is in red and increasing. This means that the bearish momentum is intensifying.

RSI: The daily RSI is falling and approaching the oversold area. It is likely that it will fall under 30 points.

MACD: The daily MACD is bearish and painted a lower low on the histogram. This is a bearish signal.

Chart by TradingView

Bias

The current bias for ETH is bearish.

Short-Term Price Prediction for ETH

The possibility of ETH falling to $2,200 seems high at the time of this writing. This is especially true in light of the current macroeconomic tension that’s riddling all markets. Once there, the price might bounce, but it’s important to remain very careful and expect increased volatility in the coming days.