Ethereum’s (ETH) price has been dropping steadily over the past few weeks as the Bitcoin onslaught pressed on. About a month ago, the Ethereum price dropped below $1800, setting new lows in over 9 months. In the article, we predicted the price of Ethereum might drop to lows of $1400 or below.
In our previous Ethereum price analysis, the asset had just broken a critical support zone ($1800). Following the analysis, which predicted a heavily bearish forecast, three targets emerged. $1402, $675 and $460. These targets would act as supports for Ethereum on its way down.
Where is Ethereum Now?
The current price of Ethereum sits at $1130.50 as of the time of writing. This is way below our target of $1402, but still correct in the direction of the trend. The price hit our target and even sliced straight through it.
ETH found temporary reprieve at $958 (1) and bounced off this support. Ethereum just finished testing the 21-day EMA (2) and has decided its next direction.
Where is Ethereum Price Headed?
After testing the 21-day EMA (2), Ethereum seems to have been unable to break through it. The asset is now headed downwards in correspondence to Bitcoin’s recent downward move. An interesting pattern may be forming here, but it won’t be confirmed for a few more days.
If ETH finds another strong support at $958 (1), it would confirm a double bottom trading pattern, which normally signals a trend reversal. This would put Ethereum at $1576.
However, if the $958 support fails to hold, Ethereum may tumble down to $675 (3) and then further down to $460 (4).
For short-term traders, Ethereum is a sell. Shorting Ethereum on 2X leverage to $958 could easily yield a +34% profit for futures traders. However, be cautious of market manipulation.
Stay tuned for more Ethereum price updates in the coming weeks.
Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a Biochemist by profession and also loves to play the piano.