Ethereum Price Analysis: ETH’s Recovery in Question Following Failure at $2.7K

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

Key Resistance levels: $2,550, $3,000

Yesterday’s excitement in the market was short-lived. ETH rallied to $2,700 but quickly fell back below the key resistance at $2,550. For this reason, it’s reasonable to assume that this was a fake-out and until the key resistance is confirmed as support, it is too early to confirm a breakout. The support sits at $2,200.

Chart by TradingView

Technical Indicators

Trading Volume: The volume on the most recent rally was good. It seems unlikely for ETH to fall much lower at this time, considering buyers are back.

RSI: During the crash, the daily RSI went to almost 21 points, falling deep into the oversold area. Now, the RSI sits at 28 points and is about to leave it. This is good news for buyers and may set the stage for a possible price breakout.

MACD: The daily MACD is curving back up at a fast rate, as indicated by the histogram. If a positive crossover can take place in the coming week, then ETH has a good chance to enter a sustained relief rally.

Chart by TradingView

Bias

The current bias for ETH is currently neutral. The price action indicates an equilibrium has been reached between market forces, with sellers unable to push prices much lower.

Short-Term Price Prediction for ETH

If ETH is able to break the key resistance at $2,550 again and make it support, then a sustained relief rally could take the cryptocurrency higher. Should ETH fail to rally, then the key support at $2,200 has proven resilient in the face of sellers.