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Ethereum Price Analysis: ETH Eyes Next Critical Support After Reaching 6-Month Low

Summary:
The Friday crash had driven ETH below ,500, wicking at ,300 – a price not seen since July 2021. Key Support levels: ,300, ,000. Key Resistance levels: ,500, ,750, 3,000 This week’s market carnage was not kind to ETH, which recorded a daily close below ,000 for the first time since the end of September. Furthermore, ETH saw a low of ,300 on Bitstamp, at the peak of the collapse. Since yesterday, ETH was able to rebound till encountering the ,500 support turned resistance. After losing the ,000 support, ETH likely entered a significant correction that may take months to recover. Chart by TradingViewTechnical Indicators Trading Volume: Very high volume was recorded during the selloff on Friday. The bears are in control. RSI: The daily RSI also got slammed

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The Friday crash had driven ETH below $2,500, wicking at $2,300 – a price not seen since July 2021.

Key Support levels: $2,300, $2,000.

Key Resistance levels: $2,500, $2,750, 3,000

This week’s market carnage was not kind to ETH, which recorded a daily close below $3,000 for the first time since the end of September. Furthermore, ETH saw a low of $2,300 on Bitstamp, at the peak of the collapse.

Since yesterday, ETH was able to rebound till encountering the $2,500 support turned resistance. After losing the $3,000 support, ETH likely entered a significant correction that may take months to recover.

ETHUSD_2022-01-23_15-00-43
Chart by TradingView

Technical Indicators

Trading Volume: Very high volume was recorded during the selloff on Friday. The bears are in control.

RSI: The daily RSI also got slammed in line with the price, reaching 21 points and, just as Bitcoin, the RSI is currently deep in the oversold area. Price may enter a relief rally, but unlikely for the mid-term correction to end even if that happens.

MACD: Daily MACD quickly fell into the bearish territory with the histogram and moving averages expanding on the negative side. A reversal appears unlikely in the short term, as sellers completely control the market.

ETHUSD_2022-01-23_15-01-25
Chart by TradingView

Bias

The bias for ETH is currently bearish. With the $3,000 support breakdown, ETH entered an intense correction.

Short-Term Price Prediction for ETH

It is unlikely that the correction will end anytime soon and any relief rally will only be temporary as ETH seeks a bottom. Until that is found, the next support level, should $2,300 fail, is located at $2,000. The next major resistance is $2500, followed by September lows at $2750.

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