Ethereum Price Analysis: ETH Surges Past $3K But Worrying Signs Appear


Key Support levels: $3,000, $2,805 

Key Resistance levels: $3,400, $3,750

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ETH’s price action has been somewhat reserved once it reached $3,000 without a strong conviction to move higher. However, despite the hesitation from buyers, the cryptocurrency continued to go higher reaching $3,235 today on Bitstamp. The $3,000 level turned into support, and the next key resistance is found at $3,400.

ETHUSD_2022-02-08_09-36-41
Chart by TradingView

Technical Indicators

Trading Volume: While the price went up, the volume went down. If the overall market turns bearish or enters a pullback, ETH appears weak and can fall under $3,000 again.

RSI: The daily RSI has moved to 60 points, placing it on the bullish side. The buyers need to sustain this level, otherwise, ETH is vulnerable to selling pressure.

MACD: While the daily MACD is bullish, the histogram confirms a loss of momentum. If the histogram makes a lower high, then it is best to take that as a warning. This can quickly be erased if buyers step in.

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ETHUSD_2022-02-08_09-36-23
Chart by TradingView

Bias

The current bias for ETH is bullish. However, ETH appears weak with decreasing volume and is losing momentum. The resistance at $3,400 may be hard to pass for that reason.

Short-Term Price Prediction for ETH

Even if ETH is above $3,000, this latest price action can quickly reverse if selling pressure intensifies. The loss of momentum and low volume is a concern. Nevertheless, the current market favors bulls, and ETH can benefit from that. Should the price continue to go up from here, the next key resistance is found at $3,400.


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