#MagicEden(ME)上市币安
Three reasons why Ethereum prices may fall sharply, and where can it fall further?
In the past three days, the price of Ethereum has fallen by 5%. Everyone is guessing whether it will collapse this week, how much further ETH can fall, and whether it is time to adjust.
Let's talk about three reasons why the price of Ethereum may fall sharply
Price and RSI divergence
Since November 11, the price of Ethereum has been rising hard, but the RSI indicator has not kept up. This is a signal to sell, indicating that ETH may fall.
Momentum weakened
The momentum oscillator AO also shows that since November 11, the momentum has been hovering above the zero line for most of the time, but it has begun to fall in the past few days. In addition, Bitcoin has also fallen, and the selling pressure may suddenly increase.
Psychological barriers have been broken
After ETH rose to the key position of $4,000, it began to pull back. Generally speaking, when the price reaches this key position, it will either pull back or take profits, so next, ETH may continue to fall.
Let's take a look at Ethereum's technical analysis: Where can ETH fall?
Looking at ETH's performance over the past 25 days, although the price has been rising, the RSI and AO indicators are falling, which is a sign of weakness. Since last Friday, ETH has fallen by 5%, and everyone has started to sell.
ETH may rebound from $38,000 to $39,000, and then there may be resistance at $4,024. If it can't get through, ETH may fall another 9% to the key support level of $3,701.
If the selling pressure is still strong, ETH may fall to the previous monthly value area high or weekly volume-weighted average price, which is $3,518.
If ETH really falls below $3,518, the situation will not be good, and it may fall another 4% to 10% to $3,368 or $3,161.
But if ETH can rebound from $38,000 to $39,000 and rise above $4,087, then all the previous bearish signals will not count. ETH may hit the psychological barrier of $4,500 or even $5,000 again.
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