• Ethereum price saw bulls come charging in late in the US session.
  • The ASIA PAC session has already erased some gains and will slip back below S2.
  • Should the selloff accelerate again, expect pressure to mount on $2,000.

Ethereum (ETH) price action looked to be starting a rebound yesterday as bulls came in late in the US session and pushed price action back above the monthly S2 support level around $2,378. During the ASIA PAC session, however, almost half of the bull pop got erased, and bears are back, putting pressure on S2 to the downside. In the case of sentiment continuing to turn lower, expect a possible dip further towards $2,000 later today.

Ethereum set to lose 18% if price slips below S2 today

Ethereum price looks to be set for a reversal as bulls came in and turned the Nasdaq green helping cryptocurrencies off their lows. Unfortunately, the positive mood did not trickle into the Asia session when price action fell back to the downside as investors kept worrying about the escalating situation in the Ukraine and the run-up to the FED meeting tomorrow. With the VIX back in the green and US equities on the backfoot, expect a possible break lower again in cryptocurrencies.

For ETH price, that would mean more pressure mounting on the monthly S2 at $2,378 with a possible break once US selling pressure is added to the European negativeness. The low of yesterday will be tested and see a break lower, resulting in a test and penetration through the $2,000 marker. Some strong resistance is foreseen around $1,928 with the low of July 22.

ETH/USD daily chart

ETH/USD daily chart

European futures are currently withstanding the depressive mood, and that could filter into US equities which could turn green as well. That would help bulls defend the S2 and push the price back to $2,695, testing the low of September 21 before possibly advancing towards $3,018. Such a move would hold a 25% gain although the descending red trend line is still likely to exert pressure on price and could limit further upside potential.

 

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