Ethereum Price Prediction: ETH runs risk of sliding 14% as crypto market weakens [Video]

Ethereum price has dropped below two significant footholds on January 21, as selling pressure increased. ETH could be at risk of declining an additional 14%, a pessimistic forecast given by the bearish chart pattern. 

Ethereum price loses two critical support levels

Ethereum price broke below the multi-month support trend line that formed since September 21 at $2,959. The spike in buy orders has also pushed ETH below the lower boundary of the descending parallel channel on the 4-hour chart located at $2,870, suggesting that ETH could put a 14% decline on the radar, toward $2,452.

The Arms Index (TRIN) which gauges overall market sentiment suggests that there is an uptick of sellers in the market, indicating some investors are panicking, leading to a sell-off.

The first line of defense for Ethereum price is at the September 28 low at $2,782. An additional foothold may emerge at the 127.2% Fibonacci extension level at $2,652, coinciding with the September 21 low. 

Ethereum price may discover another line of support at the July 24 high at $2,553 before ETH plunges toward the downside trend line of the lower parallel channel, a bearish projection given by the prevailing chart pattern at $2,452, coinciding with the 161.8% Fibonacci extension level.

However, if buying pressure increases, the first line of resistance is at the lower boundary of the prevailing chart pattern at $2,870, then at the 78.6% Fibonacci retracement level at $2,933. 

ETH/USDT 4-hour chart

Additional obstacles may appear at the 61.8% Fibonacci retracement level at $3,031, then at the 50% retracement level at $3,099 which coincides with the middle boundary of the governing technical pattern and the 21 four-hour Simple Moving Average (SMA).

Buyers will struggle to lift prices higher above $3,167, where the 38.2% Fibonacci retracement level sits, and at the 23.6% Fibonacci retracement level at $3,252, intersecting with the 100 four-hour SMA.