Ethereum Price Forecast: ETH On Course To Break Below $500?
Daily Ethereum Price Prediction
- Market trend in the daily chart has reversed from bullish to bearish.
- The 4-hour BTC price has broken below the 20-bar, 50-bar, 200-bar SMAs.
After failing at the $660 psychological level, Ethereum has been on a steady downtrend. After failing to stay above the $600-level, the price has managed to drop to $575. So, is a fall below $500 on the cards as well? Let’s take a look.
ETH Trend Reverses From Bullish To Bearish
As per the Lucid SAR, Ethereum’s daily price chart had been on a bullish trend since November 29. However, this Wednesday, the price plummeted from $635 to $585. In the process, not only has the SAR reversed from bullish to bearish, but the price has dipped below the 20-day SMA, as well.
Image: ETH/USD daily
The MACD also adds to our pessimistic outlook since it shows that the bearish momentum is steadily increasing. The 4-hour chart shows that the price has crashed below the 50-bar, 20-bar, and 200-bar SMA during this current downtrend. Looking back at the daily chart, one can see that the 50-day SMA ($548) is absolutely crucial for the price to stop its downtrend.
Image: ETH/USD 4-hour
However, it’s not all doom and gloom. The relative strength indicator (RSI) is about to dip into the oversold zone, which indicates that the asset is underpriced.THis could trigger a bullish revival.
Galaxy Digital CEO Comments on Ethereum’s “SEC Pass”
Mike Novogratz, the CEO of Galaxy Digital, took to Twitter to comment on the US Securities and Exchange’s (SEC) lawsuit against Ripple. He suggested that the lawsuit might not end up well for XRP. He also reminded the community that the SEC has already acknowledged that Bitcoin and Ethereum are not securities.
Ripple and two of its executives (CEO Brad Garlinghouse and former CEO Chris Larsen) are being sued over alleged illegal sales of XRP. From Novogratz’s tweet, one can assume that he does not expect anything good for XRP and for other altcoins launched in 2017.
Novogratz added that he thought the SEC's chief Jay Clayton would have taken this step much earlier than 2020.
Key Price Levels To Watch For Ethereum
The 50-day SMA ($548) is the most crucial level to watch for Ethereum. If it breaks, the price of Ethereum will drop all the way to the 200-day SMA ($385). However, if the buyers manage to successfully bounce up from this level, they must reclaim the 20-day SMA ($620).