What Could This Correction Mean For Ethereum Price In Q1 2024?
Ethereum price faces immense bottlenecks amid a sustained drop from its 2024 peak at $2,715 to slightly above $2,200. The sell-off impacting the performance of ETH over the last couple of weeks stems from the downturn that swiftly followed the approval of spot Bitcoin ETFs in the US.
While many altcoins and even Bitcoin crumbled under the weight of post-ETF approval blues, Ethereum price stood defiant, briefly basking in the warm glow of investor optimism. But even its flame couldn’t withstand the icy grip of the relentless market malaise.
Now, the king of smart contracts teeters precariously, its crown at risk of slipping below the $2,000 mark.
Is this a good time to buy Ethereum price dips?
The path of least resistance is majorly inclined downwards, reinforced by a vivid sell signal from the Moving Average Convergence Divergence (MACD) indicator.
According to the daily chart, most traders and speculators missed a negative Relative Strength Index (RSI) divergence from ETH price possibly due to optimism around the ETF.
With the RSI neutral but falling below 40, an immediate recovery could be a pipe dream. Therefore, it could be prudent for traders to be ready to dollar-cost average (DCA) while anticipating a rebound.
Recommended: Which Top Altcoin To Buy For The Bull Run Today: LINK, SHIB, LUNC?
Fibonacci levels reveal that the trend reversal might continue slightly below $2,000 but precisely at $1,980, as highlighted by the 0.618 retracement ratio.
For such an outcome, Ethereum price will have to flip the highly contested $2,200 level into a resistance as well as the 200 Exponential Moving Average (EMA) (purple) at $2,016.
Holding above $2,200, on the other hand, could usher in another bullish era, where bulls push for an upswing beyond the January peak of $2,715 and aim for highs above $3,000.
Several crypto analysts like @Gotzeuus agree with the short-term bearish outlook, suggesting that Ethereum price will dive to sweep the $2,067 low. If this level holds, a rebound could ensue.
The analyst warned on X that Ethereum and altcoins could take a beating from Bitcoin price action, implying that this might not be the time to “overexpose” the crypto portfolio to altcoins.
$ETH update
There is high change we go to take 2067 low if we don't hold here, so patience
ETH/BTC also looking ready for a pullback after 0.061 bearish retest, therefore expect ETH and alts to suffer from BTC price action
Not the days to overexpose yourself in conclusion https://t.co/5Cjqz0DGis pic.twitter.com/mSiLtzrwYD
— Gotzeuus (@Gotzeuus) January 23, 2024
For now, the best advice could be to exercise patience and avoid rushed decisions. Letting the doldrums settle will provide a clear trajectory Ethereum will likely follow.
Related Articles
- Manta Network Price Prediction: Will $MANTA Lose $2 Amid Current Market Sell-off?
- Shiba Inu Price Prediction As SHIB Burn Rate Spikes, Will SHIB Hit $1 Soon?
- Michael Saylor Shares Cryptic Post, Is Next Bitcoin Buyup in View?
- Expert Says Crypto ETFs Could Be ‘Death-Knell’ for Treasury Firms MSTR, MTPLF, BMNR, SBET
- Trump-Linked WLFI Passes 100% Buyback & Burn Proposal, Analyst Eyes Bullish Surge
- Crypto Market Liquidations Top $1 Billion Again With Ethereum Leading, Buy The Dip Opportunity Ahead
- Nasdaq-Listed AlphaTON Kicks Off Treasury Strategy, Buys $30M in Toncoin After $71M Raise
- XPL Token Soars 52% as Plasma Mainnet Launch Ignites Trading Frenzy
- HYPE Price Prediction As Bitwise Files For Hyperliquid ETF – Is $55 In Sight?
- Shiba Inu Price Eyes Recovery From Demand Zone With Burn Rate Soaring Nearly 400%
- Bitcoin Price: Analyst Predicts Crash to $104K Before Explosive Rally on Fed Cut Pattern
- HBAR Price Elliot Wave Signals an 86% Rebound as Key Risks Remain
- Will Pi Coin Price Recover Before Month-End After Payochain Listing?
- Chainlink Price Prediction as Whales Buy 800K LINK — Can the Demand Zone Launch a Recovery?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
