Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice

Ethereum’s price registered a new ATH on the charts recently. However, despite corrections setting in and its high correlation with Bitcoin, ETH managed to keep its losses to a minimum over the past few days.

Interestingly, over the past week, Ethereum has also seen its price consolidate and trade sideways as it stuck to the narrow confines of its immediate resistance and support. However, in the coming week, is the coin likely to endure a bigger price correction? And, will it be able to sustain its position close to the $1,000-price level?

Read Also:   Bitcoin (BTC) has a 9% Probability of Exceeding $100k by Sept. 2021

At press time, Ethereum was trading at $1,255 with a market cap of over $144 billion. The cryptocurrency registered a 24-hour trading volume of $33 billion, with the same hiking by close to 4.5 percent over the past week.

Ethereum 1-day chart 

Source: ETH/USD, TradingView

According to Ethereum’s one-day chart, ETH has seen its price move between its resistance at $1,436 and its immediate support at $1,223. However, it is important to note that in the last 24-hours, the coin’s immediate support was breached, despite the bounce-back on the charts. The coin also registered another strong support around the $932 and $789-price range.

Given the overall market sentiment, it is unlikely that ETH will meet the $789-price level. However, in the coming week, a move to $932 cannot be discounted. For traders, this presents an opportunity to open a short position as the coin looked likely to see an upcoming drop in price.

Read Also:   XRP, Dogecoin, Bitcoin SV Price Analysis: 25 December

Reasoning 

The technical indicators for Ethereum were bearish, at press time. Its MACD indicator underwent a bearish crossover, with the Signal line going past its MACD line, and to make matters worse, there seemed to be no real possibility that a reversal was likely in the short to medium term.

The RSI indicator also moved away from the overbought zone, with the same moving slightly closer to the neutral zone while highlighting the falling bullish sentiment in Ethereum’s market.

Important levels to watch out for

Resistance: $1436.6

Support: $1128, $932 , $789

Entry: $1223

Take Profit: $960

Stop Loss: $1373

Risk/Reward: 1.75

Conclusion

Read Also:   Parabolic Bitcoin market cap sees BTC briefly top Facebook valuation

While Ethereum has shown a bit of resistance to massive price corrections, the next few days may see the coin register a slight dip. If the coin’s press time support withstands the bearish pressure, this may not happen. However, given the strong bearish sentiment in the market, Ethereum’s price may soon be heading to its second level of support in the next few days.


Download MAXBIT Android App, Your best source of all crypto news!
Google Play


Ethereum Price Analysis: 23 January

by Rose Battleson
Choose A Format
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format