Market Analysis

ETHEREUM PRICE ANALYSIS & PREDICTION (January 16) – ETH Resumes Drops This Week After Losing 7% In Five Days, Can It Recover?

Ethereum saw a big breakout last week but failed to sustain the momentum. The price rolled back quickly and ended the week in the red. It resumed selling today with a 2% loss with a market dominance of 18%.

The $2,700 range, which has been much-anticipated in the past months finally came into the spotlight after a successful cross above the $2,450 level during last week’s surge.

That range saw Ethereum test the $2,717 level but later found it difficult to push higher due to exhaustion in buying. The bears took advantage of that exhaustion and initiated a drop.

Ethereum’s price rolled back and closed the week’s trading below the $2,500 level. The first day of this week came with more bleeding and the price slipped to a daily low of $2,470. It has recovered briefly in the past hours.

Now that ETH is in a downward range, it is important to pay attention to some key levels for a rebound. If it fails to find support this week, we can expect more bloodbaths in the upcoming week.

Right now, the bulls are off the market. Their return may bring a small relief in the drawdown. While the $2100 level has supported bullish actions in the past weeks, a drop below it could result in a broader retracement to $1,800.

ETH’s Key Level To Watch

Source: Tradingview

In the next leg down, the key support level to keep in mind is $2,445 once it drops below the daily support. Below this level lies a minor support of $2,330, followed by $2,257.

For the past few hours, ETH has bounced briefly from a daily support of $2,470 to where it’s trading at $2,514. If the price recovers more in the next few hours, it may retest the $2,566 level as resistance and $2,600 before reclaiming $2,717.

Key Resistance Levels: $2,566, $26,00, $2,717

Key Support Levels: $2,445, $2,330, $2,257

  • Spot Price: $2,514
  • Trend: Bullish
  • Volatility: Low

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Image Source: stevanovicigor/123RF // Image Effects by Colorcinch

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