- The short-term Ethereum price prediction was a bounce toward $2,000.
- In the coming weeks, more losses appeared likely as bulls had little strength to hold the sellers back.
Ethereum [ETH] has fallen below the November 2024 lows. At press time, it was trading below the $2,000 psychological level that it had last tested in November 2023. This was worrisome for holders. ETH/BTC reached a low not seen since December 2020.
The technical indicators showed that the downtrend has not eased into a consolidation phase yet. Bearish targets to the south were highlighted- how likely is Ethereum to reach these support levels?
ETH retests $1,950 as resistance, time to go short?
Source: ETH/USDT on TradingView
The daily chart reveals a firmly bearish market structure. The 23.6% southward Fibonacci extension level at $1,944 has been broken and retested as resistance.
The OBV continues to decline, indicating heightened selling pressure, while the RSI remains below the neutral 50 mark. However, over the past two weeks, a bullish divergence has formed on the RSI, suggesting the potential for a price bounce.
If a bounce occurs, the $2,100 area could serve as a short-term target before encountering resistance.
The declining OBV and price trend indicate that a consolidation phase has not yet begun. A range formation, accompanied by a rising OBV, would signal accumulation, but Ethereum bears still hold control.
As a result, Ethereum is likely to continue its downtrend in the coming weeks, with the next support level at $1,544.
Source: Coinglass
The 6-month liquidation heatmap showed that the $1.6k-$1.8k region was filled with a dense cluster of liquidation levels. This made it a good price target and also a prime candidate for a bullish reversal.
To the north, a strong magnetic zone was spotted at $2,872 and a less intense one at $2,360.
Source: Coinglass
To gauge the short-term trends, the 1-week liquidation heatmap was analyzed. It showed that a potential short-term range formation between $1,840 and $1,960.
Hence, traders need to be on their toes if the price bounce appears to stall near the $2k mark.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
