Ethereum Price Analysis: Battle at $1,800 – Recovery or Deeper Correction Ahead?
Ethereum, the second-largest cryptocurrency by market capitalization, has recently seen a significant decline, slipping below the critical $1,800 support level. Currently trading around $1,809, Ethereum’s price reached a 24-hour low of $1,754, closely following Bitcoin’s downward movement to $81,000. This price trajectory is causing concern among investors, particularly those with substantial holdings.
Market Dynamics and Technical Indicators
The daily chart for Ethereum reveals a concerning pattern with six consecutive bearish candles, reflecting a near 12% price pullback from recent highs. Despite this bearish trend, there is hope on the horizon with the potential formation of a double-bottom reversal pattern. This pattern, if confirmed, could provide a bullish signal, especially as Ethereum approaches the $2,100 resistance level.
Adding to the potential for a bullish reversal is a divergence on the daily Relative Strength Index (RSI), a technical indicator that suggests the market might be gearing up for a positive shift. For Ethereum to complete this reversal, it would need to break above its local resistance trendline, with the neckline situated near the $2,100 mark.
Whale Liquidation Concerns
In addition to technical indicators, market dynamics are influenced by the activity of large crypto holders, often referred to as “whales.” According to LookOnChain, two significant Ethereum holders on MakerDAO are facing potential liquidation, holding 125,603 ETH valued at approximately $229 million. The liquidation risk is tied to price levels at $1,787 and $1,701, and any further decline below these thresholds could result in forced selling, potentially exacerbating the current market downturn.
Despite the looming threat of liquidation, some analysts maintain a positive outlook. Crypto analyst Jonathan Carter highlights Ethereum’s position above the lower boundary of a descending triangle pattern on the 4-hour chart. He suggests that a rejection of prices near $1,800 could lead to a bounce, challenging resistance levels at $1,950 and $2,080.
Price Projections and Key Levels
Price projections for Ethereum remain varied, with some analysts setting ambitious targets at $2,230 and $2,320, contingent upon a revival of bullish momentum. However, Ethereum faces immediate challenges, trading below the 100-hour Simple Moving Average with a bearish trend line at $1,820.
Should Ethereum fail to reclaim the $1,880 resistance, further declines could be on the horizon, with support zones identified at $1,780, $1,765, and $1,720. A breach of these supports could extend the correction, potentially testing levels near $1,500.
For Ethereum bulls to regain control, clearing key resistance levels at $1,820, $1,880, and the psychologically significant $2,000 is crucial. Success in overcoming these barriers could pave the way for a more sustained recovery in the sessions ahead.
For further insights and detailed analysis, visit the source article at CoinCentral.
