Ethereum (ETH) is trading lower this Thursday (24), going in the opposite direction of the broader cryptocurrency market.
With a daily devaluation of 1.6%, ETH tries to maintain the level of US$ 2.5 thousand as support. Will the asset be able to turn around and resume its upward trend?
Ethereum tries to find support
Ethereum has been in a correction since October 20, when it peaked at $2,768. Since then, the altcoin's price has fallen by as much as 12%.
Despite briefly falling below the 0.618 retracement level, the asset recovered, initiating a small bounce from that level. This move was predicted by the Relative Strength Index (RSI), which fell below 30, indicating that the cryptocurrency was in an oversold state and that a bounce was the most likely scenario.
Ethereum (ETH) chart on TradingView
However, the current bounce has not yet been able to overcome the 0.5 retracement level. Doing so is essential to confirm that new highs may follow.
The 2-hour chart calls this possibility into question. On this timeframe, the 9-period (blue) and 21-period (orange) exponential moving averages (EMAs) are acting as resistance. Furthermore, the crossover of these averages is bearish.
Ethereum (ETH) chart on TradingView
Finally, the RSI on this timeframe has not yet crossed above 50, which shows that sellers still have strength in the market. Therefore, a drop below the 0.618 retracement level cannot be ruled out.
If that happens, ETH could drop to $2,331.
The article Ethereum (ETH) Forecast: How Can the Price Behave Today? was first seen on BeInCrypto Brazil.
