Ethereum prices are said to be pretty consistent and steady amid the negative market conditions. Apart from the external factors that drag the market to its knees, everyday trade impacts the ETH price with less intensity. However, after constant rejections at $2000 earlier and $1800 now, weather the second-largest asset slowly squeezing the resistance levels?
If yes then what about the support levels, will $1725 be maintained or new lows are fast approaching?
The ETH price after dropping hard from $4000 in the first few days of 2022, attempted multiple times to range above $3000. But eventually, the attempt resulted in a 22% to 25% plunge below $2700. Then the new resistance was around $3000 while the support zone had formed at around $2500. However, after the LUNA-UST crisis, the resistance levels have been lowered to $2000 and the support at $1720.
Now when the bears are expected to drag the crypto space lower, will the ETH price break below $1720 to form new lows below $1000?
The prices earlier had broken from an ascending parallel channel and dropped 20% initially. Further, after a minor consolidation tanked by nearly 40% and again began to consolidate between $2000 and $1725. However, the present drop is a little distinct from the previous one, as a steep drop and consolidation have formed a notable bearish flag.
Therefore, if the price fails to rebound from the lower crucial support of $1659, then the prices could drop hard below $1000. However, for the past couple of days, the Ethereum price is attempting very hard to sustain itself within the upper bands of the channel. While the recent drop has dragged the price lower.
Therefore, if the ETH price manages to close today’s trade above $1800, then the possibility of nullifying the impact of the bearish flag emerges. Else the asset could continue draining into the deep bearish well discovering new lows.