Ethereum Price Prediction: ETH retreat beckons in the wake of $1,700 record top

By John Isige
Published February 5, 2021 Updated February 5, 2021
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Ethereum Price Prediction: ETH retreat beckons in the wake of $1,700 record top

By John Isige
Published February 5, 2021 Updated February 5, 2021
  • Ethereum rebounded from the support at $1,550 but ran out of steam to overcome the resistance at $1,700.
  • ETH breakdown impends ahead of another upswing to a new all-time high.

Ethereum struggles with sustaining the uptrend after hitting a barrier at its recently achieved record high ($1,700). Support at $1,550 cam came in handy following the rejection. Thus a recovery ensued above $1,600.

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In the meantime, Ether is teetering at $1,545 amid the fight to close in on the new all-time high. However, it is doubtful that Ethereum will hit new highs before it retreats to allow more buyers to come in while others increase their positions.

The Moving Average Convergence Divergence (MACD) support this short-term narrative after slowing down on its uptrend. Besides, the MACD line (blue) is most likely to cross below the signal line. This will call out to traders to sell, with some preferring not to increase their exposure.

ETH/USD 4-hour chart

ETH/USD price chart
ETH/USD price chart by Tradingview

Apart from derailing the uptrend, a breakdown may put a lot of stress on the support at $1,550. The Relative Strength Index has also been purged from the overbought region, hitting that buyers have less influence as the overhead pressure increases.

ETH/USD daily chart

ETH/USD price chart
ETH/USD price chart by Tradingview

The TD Sequential indicator may present a sell signal on the daily chart, adding credibility to the bearish outlook. The call to sell will manifest in the form of a green nine candlestick. If validated, Ethereum could drop in one to four daily candlesticks. The most probable support is the 50 SMA around $1,440 on the 4-hour chart.

Ethereum intraday levels

Spot rate: $1,635

Relative change: 37

Percentage change: 2.5%

Trend: Undefined

Volatility: Low

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Isige
1116 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

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