Analysis: Ethereum Starts to Fall, Can It Find Support at $2,300?

Ethereum, like the rest of the currency, is in decline. That’s not surprising after so many green weeks, but where does it end? In this analysis we will look at two important foundations for the second crypto market.

ETH long term

Before we get into that, it’s worth taking a look at the weekly chart. Here we can look back at the price to analyze important past price levels. While some short-term supports may be important, the “big chart” supports remain dominant.

In the case of Ethereum, there are two main zones that have influenced the price action. They are shown in the image above as gray areas (around $900 and $2,100). We can leave the bottom zone as it is, but the top zone is very important.

This is a place where Ethereum’s price has faced major difficulties in 2023. The coin has failed to do this several times. However, as buyers continued to buy higher and sell orders came out at a price of $2,100, ETH still rose above this area.

Can Eth support?

Since then, the coin has shown very healthy upward movement. To analyze this we have to zoom in a bit. That’s why we also look at the 4-hour chart so we can see the short-term movements in more detail.

Above we see the gray zone from the first diagram, but also a green zone and a red zone. The green zone is a price level that has emerged after the coin has reached a similar level several times. Therefore, it was likely that if the coin broke out of this zone, it could also leave the gray zone.

This also happened because buyers increased the price. The coin reached a high of $2,400. But as I mentioned in previous reviews, it is very normal for a coin to return to old resistance – and then continue to rise.

Ever since Ethereum hit the green zone, it has been hitting higher and higher lows. This is very positive, but the currency appears to be in a downward trend at the moment. Therefore, it would be good if the coin finds support in the red zone at $2,300, otherwise the next support seems to be the gray (or green) zone. Still, it is good that in both cases the price continues to look strong in the long term, even if we are now seeing a slight decline.

Source: BtcDirect

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