The recent crypto crash was a tough one, especially going into the new year of 2022. Many crypto enthusiasts expected a rally in prices but were met with a falling market over the holidays. Many attributed this decline to several factors like profit-taking, liquidation for holidays gifts, and other reasons. On the other hand, the fundamentals of the crypto market have a different say. The Ethereum price reached a critical turning point today. Should you buy in anticipations of higher prices soon, or wait for a further drop in the market?
Ethereum Price Lost more than 20% in 2 Weeks
It is true that most cryptocurrencies lost significantly in valuations. Ether lost more than 20% since December 26th, 2021 when the crypto market started to crash.
“But how could I have known??” Well, for starters, you can join our Premium Discord. There you will receive trading ideas and professional trading support. Our Premium Discord is not just about trading. You will also find out the latest crypto trends early enough, from which you can benefit massively or at least exit the market.
On the other hand, if you are good at technical analysis, you would’ve seen the break in the uptrend of Ether. In figure 1, we can clearly see how the daily candle broke the uptrend lower. This is a clear indication of upcoming lower prices, and this is where you liquidate if you bought Ether at positions higher than a price of USD 3,000.
Ethereum Price Prediction – Should you Buy ETH Today?
If we zoom out further, we can see a repeating pattern when it comes to the Ethereum price. It seems like prices tend to go on an uptrend, then break lower into strong support areas. This specifically happened back in May, June, and September of 2021. In figure 2, we can see the yellow support levels where prices tended to take a breather before continuing higher.
Today, prices reached a previous consolidation zone, delimited by a price of USD 3,200. This is where technical traders become interested in trading.
We currently have two case scenarios:
- Buy at the current price and place a tight stop-loss of USD 3,050 as prices might rebound and correct upwards (30% success rate)
- Wait for a further downside towards the next support level of USD 2,750
This of course depends on the general trend of the cryptocurrency market, and Bitcoin specifically.
The Crypto Market at a Glance
In the past 24 hours, the cryptocurrency market saw a slight decline in prices of around 1.4%. Its market capitalization fell below USD 2 Trillion, and most cryptos are in the red with the exception of very few. The top gainers were IC, DASH, and AAVE gaining respectively 11%, 10%, and 7%. On the other hand, the top losers were VLX, ATOM, and RVN losing 13%, 12%, and 11% respectively.
1- Bitcoin (BTC) : – 1.42%
2- Ether (ETH) : – 1.36 %
3- Tether (USDT) : 0 % (surpassing BNB)
4- Binance Coin (BNB): – 0.33 %
5- Solana (SOL) : + 2.69 %
6- Cardano (ADA) : – 0.56 %
7- USD Coin (USDC) : + 0 %
8- Ripple (XRP) : + 0.14 %
9- Terra (LUNA) : – 3.90 %
10- Polkadot (DOT): – 2.47 %
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