Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- ETH’s weak fundamentals could delay immediate price reversal.
- Short-term Ethereum holders’ profits could be cut to size.
Ethereum [ETH] dropped below its $1,600 mark after Bitcoin [BTC] lost the $23k zone. BTC sharply declined on 24 January, moving below $22.5k and pulling down ETH to $1,518.
At press time, ETH struggled to break above $1,560 as BTC hovered below the $22,800 level. Therefore, BTC’s loss of traction and velocity could force ETH into a short-term range before bulls attempted to target the green zone.
Read Ethereum’s [ETH] Price Prediction 2023-24
ETH is stuck in the $1,540 – $1,560 range: Is a break above likely?
Source: ETH/USDT on TradingView
ETH fronted an extra rally around 14 January, despite signs of slowing momentum. The price action carved a rising channel (yellow) in the same period.
The altcoin broke below the channel but found steady support at $1,511. The ensuing recovery faced rejection at $1,678, followed by a slight consolidation before a major drop on Tuesday to the $1,500 region.
On the 12-hour chart, ETH’s Relative Strength Index (RSI) declined and was 52, showing a mild bullish momentum that was close to a neutral market structure. Similarly, the On-Balance Volume (OBV) declined, undermining a strong uptrend momentum for the King of the altcoin market.
Therefore, ETH could fluctuate in the $1,540 – $1,560 range in the short term before attempting a retest of the $1,600 zone in the next couple of days/weeks. In addition, a move to the $1,700 zone could be possible if BTC moves beyond $23K, especially if next week’s FOMC announcement triggers the markets positively.
However, a drop below $1,511 would invalidate the above bias. Such a plunge could see ETH settle at $1,471.
![Anticipation for Ethereum [ETH] 2.0 rises as metric reaches all-time high](https://crypto.newswireservice.net/wp-content/uploads/2023/01/ethereum-wale-1000x600-350x250.jpg)
