On Sunday, the price of Ethereum dropped to $2398

Ethereum chart analysis

On Sunday, the price of Ethereum dropped to $2398. We were close to hitting a new weekly low but stopped short of it. It still remains at the current low of $2395 from Wednesday. This morning, with the beginning of Monday, prices stabilized and started a recovery to the $2470 level.

Here, we come across the EMA 50 moving average, where we had resistance in the previous days. If the current bullish momentum continues, we expect to see an impulse above and the formation of a new daily high. We also get support from the EMA 50 for further continuation on the bullish side. Potential higher targets are the $2500 and $2550 levels. In the $2550 zone, we will test the large EMA 200 moving average.

Can we expect the price to stabilize and start a more concrete recovery?

EMA 200 support would be crucial for us to progress further this week. Last week’s high is at the $2750 level. For a bearish option, we need the price of Ethereum to drop down to the daily open level. New pressure on that level could easily move us below to a new low and thus confirm that we are under bearish pressure.

After that, all we have to do is continue the pullback and create a new lower low. Potential lower targets are the $2350 and $2300 levels. Falling to $2300 level, we tested the August support zone. If we look at the bigger picture, the price of Ethereum is in a bearish trend for the fourth month in a row. Based on this, we conclude that the price could retest the significant support around the $2200 level again.