ETH price analysis: Bulls and bears battle at $2,300 mark
Ethereum’s (ETH) price has experienced a volatile week and is on its path to recovery as bulls and bears continue their battle for dominance around the $2,300 mark.
The recent increase in ETH price encountered resistance around $2,300, leading to a modest pullback from its peak at $2,307. Despite briefly dropping below $2,280, bullish momentum persists, and support remains robust above the $2,240 level. A significant breakthrough was observed as a bearish trend line at $2,265 was breached, indicating potential market strength.
With ETH maintaining its position above the $2,240 support and the 50 percent Fibonacci retracement level, attention turns to overcoming key resistance hurdles. The immediate challenge is at $2,280, followed by the crucial resistance at $2,300. A successful breach above $2,300 could propel Ethereum toward $2,350.
Should the bulls successfully propel the price beyond the $2,350 resistance, they could aim for $2,420, with a breakthrough above the level having the potential to initiate a substantial uptrend. In such a scenario, the price may ascend towards the $2,550 level.
In contrast, an inability to establish authority over the $2,300 region could result in a pullback in Ethereum’s price. In such a scenario, there seems to be reliable support around the $2,240 level, followed by a critical reinforcement at $2,220.
If the price falls below this support, it could lead to a notable drop, risking a retreat to the $2,170 level or, worse, a decrease to the $2,120 region.
The hourly Moving Average Convergence Divergence (MACD) for ETH/USD indicates a slowdown in bullish momentum, and the hourly Relative Strength Index (RSI) suggests that Ethereum is hovering around the 50-level, with potential for movement in either direction.
These indicators emphasize the support at $2,220 remains sturdy, as well as the resistance at $2,300. These levels are pivotal in shaping Ethereum’s short-term price trajectory as the digital currency cautiously navigates within a competitive and dynamic market landscape.
Benjamin Cowen: ETH to crash below $1,000
Prominent crypto analyst Benjamin Cowen suggests that ETH price might see further declines before reaching a local bottom, with a possibility of below the $1,000 level. He believes this potential dip will happen based on the asset’s historical patterns.
Cowen explained that ETH tends to “test the integrity” of its major cycle lows roughly two times before entering a new bullish phase. He predicts that ETH will first experience a breakdown in its Bitcoin confluence (ETH/BTC) in the coming months before a similar breakdown occurs in ETH/USD.
“So at some point, I think Ethereum will test the integrity of that low, back down below $1,000. But history also suggests that it won’t test it until after ETH/BTC breaks down. And history also suggests that ETH/BTC probably won’t break down in January because normally January is a good month for Ethereum,” said Cowen on his YouTube channel.
However, the analyst highlighted that the unfolding of this situation might be delayed due to heightened speculation among investors regarding the potential launch of a spot Ether ETF and the upcoming Bitcoin halving event in April. Experts suggest that, given the clarity provided by the approval of Bitcoin ETFs, spot Ether ETFs may be introduced earlier than initially anticipated.
The optimism remains despite the U.S. Securities and Exchange Commission (SEC) having announced a delay in its decision on a batch of applications for spot ETH ETFs. Among the applications affected by the delay are those of Grayscale Investments, BlackRock and Fidelity.
In a January 18 filing, the SEC said it “finds it appropriate to designate a longer period within which to take action on the proposed rule change,” adding that it needed “sufficient time to consider the proposed rule change and the issues raised therein.”
Angel Marinov is the Managing Editor at Coinlabz. With extensive knowledge of crypto payments and blockchain use cases, Angel is a trusted source of accurate and timely information
