Ethereum Might Fall If Crucial Support Levels Fail To Hold

Crypto analyst Michael van de Poppe tweetd about the crucial resistance and support levels that might determine ETH downtrend or upswing. He foresees if ETH fails to hold on to the $1090 support level, it might sharply fall.

Potential areas I’d be looking at with $ETH, as markets continue to break down.

Would classify the levels as some final areas.

– Resistance @ $1,225.
– 15m support @ $1,170.
– 1h support @ $1,140.
– 1h support @ $1,090.

After that, probably sharp fall if neither holds. pic.twitter.com/CntguIYNSH

— Michaël van de Poppe (@CryptoMichNL) December 22, 2022

The past 24 hours have seen a gain in ETH by 0.30%, according to CoinMarketCap. As a result, the price of ETH clocked at $1,21.20, at the time of writing.

Another indicator that showed a bullish signal over the past 24 hours is the 24-hour trading volume for ETH, which now stands at $5,518,305,452 after an increase of 49.59%.

Source: Trading View

The daily chart of the price of Ethereum shows that ETH has retraced above the significant $1,200 support level and is currently trading at near the $1219 area. A chance for investors to profit from the current market may have arisen due to the recent fall in Ethereum’s price, representing a new yearly low for ETH.

The price of ETH has tested the resistance level at $1225 multiple times, but it has yet to be broken. The altcoin’s price might surge if it makes another effort to break through this barrier.

The daily 9 EMA line has recently surpassed the daily 20 EMA line, and the price has also repeatedly tested the resistance level at $1,225. Additionally, the daily RSI line slopes upward above the daily RSI SMA line. These technical signals are bullish flags that indicate the price of ETH is poised to soar.

Source: Trading View

On the 4-hour chart, the RSI is approaching overbought territory at 54.54, indicating intense sell pressure. ETH seems hostile in the foreseeable future. Red candlesticks show a price fall in the most recent hours to stop the positive momentum.

Significantly, ETH has support at $1217, which will prevent further declines. Therefore, a slight price retracement cn be expected for ETH. If buying pressure resumes, the retracement level at $1225 may rapidly hit.

Notably, it will take time to forecast the future price of Ethereum while the bulls and bears fight price changes. Although the technical indications currently favor the bulls, traders should be mindful that the opposite is also possible.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk, Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

Source