Ethereum Price Analysis: ETH Bounces 10% But Is the Pain Over?

cropped potato fav2 32x32 1

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

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

ETH has rallied 10% after touching the $2,200 support level yesterday. Now, the cryptocurrency is moving towards the critical resistance at $2,550, where the price was previously rejected. If it manages to move above this level and turn it into support, then it has a good chance to go higher and recover some of the most recent losses.

Technical Indicators

ETHUSD_2022-01-25_13-15-03
Chart by TradingView

Trading Volume: The volume has been high in the past few days and favored the sellers. However, as ETH has reached oversold conditions, the immediate trend may change and put ETH back on the uptrend.

RSI: The daily RSI is in the oversold area at 26 points. It is likely to leave this extreme position soon as ETH attempts a relief rally.

MACD: While the daily MACD is bearish, the histogram today has made a higher low. If this is maintained, then ETH may reverse course soon and attempt to break the key resistance.

ETHUSD_2022-01-25_13-15-35
Chart by TradingView

Bias

The bias for ETH is currently bearish. While the indicators remain bearish, a reversal is becoming likely. A break of the key resistance would confirm that and change the bias.

Short-Term Price Prediction for ETH

The most probable scenario right now is for ETH to attempt a break of the key resistance at $2,550. If successful, then it can enter a sustained rally towards $3,000. If the price is rejected again by the resistance, then the key support at $2,200 should provide a good defense.

SPECIAL OFFER (Sponsored)

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 25% off trading fees.

Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.