Aaryamann Shrivastava
FXStreet
- Ethereum price sunk by over 33% earlier this week amid excessive selling pressure.
- Despite the recent dip, ETH is maintaining its year-old downtrend line as support.
- A jump to $1,400 warrants a 12% upswing from Ethereum.
Ethereum price, along with the rest of the crypto market, is recovering from the crash that occurred 24 hours ago. The altcoin king dipped to its four-month lows in the span of 72 hours but still managed to keep above its key support levels.
Ethereum price hikes back up
Ethereum price noted a 33.17% decline when the market took the heat from FTX’s collapse, but within hours, it recovered a significant portion of its losses. Up by almost 18% in the last 24 hours, ETH could be seen trading at $1,279, reclaiming a critical support level.
On the 4-hour chart, $1,240 marks the altcoin’s critical support level that has been in place since July this year. November 10’s recovery brought Ethereum back above this price level, testing it as support once again. Since the broader market cues are suggesting a recovery on the cards, ETH could continue to bounce off this level and rise ahead.
ETHUSD 4-hour chart
This would make $1,460 its next target as the price point is ETH’s next critical resistance level. The altcoin failed to successfully test it as support before the crash despite hovering above it for almost a week.
Over the next few days, buying pressure is expected to pull the market back up from the lows. The Relative Strength Index (RSI) has just exited oversold giving a buy signal as Ethereum witnesses gradually increasing buying pressure.
ETHUSD Relative Strength Index
Support from the bulls would push the price back up, and a potential breach of the resistance would bring ETH closer to once again testing the resistance block from $1,641 to $1,761.
ETHUSD 1-day chart
However, if the selling pressure persists, Ethereum could decline to test its macro-critical support at $986. This level also coincides with the almost 12-month-old downtrend line, which ETH could test as support. If these levels are invalidated, Ethereum is looking at an extended downswing which could take it to $800.
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