Ethereum Price Prediction: ETH Drops After HItting $2,700 Resistance
Daily Ethereum ETH Technical Analysis
- Ethereum price downside protected by $2,500 support.
- On May 30 and May 31, ETH jumped from $2,270 to $2,700.
Following three straight bearish days, the Ethereum price jumped up from $2.270 to $2.700 – almost $500 – on May 30 and May 31. However, ETH encountered resistance at the $2,700 line and has dropped to $2,635.
Ethereum Price Drops After Charting Bearish Cross
Over the last 8 days, the Ethereum price has been trending between $2,880 and $2,260 – more or less in a $600 channel. During this horizontal movement, the smart contract leader reversed the parabolic SAR from negative to positive. While this is a positive sign, do note that the MACD shows sustained bearish momentum, and the 50-day SMA has crossed over the 20-day SMA to form the bearish cross.
Image: ETH/USD daily
According to the IOMAP, the $2,700 resistance is a somewhat formidable barrier to the Ethereum price. Previously, at this level, nearly 416,000 addresses had purchased over 1.51 million ETH tokens.
Ethereum Price Transaction Fees and Miner Revenue Dropping
Frank Chaparro, the director of news at The Block, shared these two charts to show the current state of the Ethereum network. Firstly, the average transaction fee on the Ethereum network has dropped considerably..
Along with that, it seems like Ethereum miners have been making considerably less revenue as well.
Ethereum Address Activity Growing
"Ethereum's address activity is growing again, & the amount of active deposits that were prevalent during the major panic selloff last week has died down. The crowd sentiment is bearish, which is a good sign for the bulls."
However, the traders seem to be more impatient than ever before. (This is a good thing).
"Ethereum traders are showing signs of impatience and exhaustion as the price has chopped in the low to mid $2k range. This kind of capitulation and crowd doubt was last seen April 7th, when $ETH's price then proceeded to doubled over the next month!"
Ethereum Price Is Expected To Reach These Levels
Looking at the IOMAP, the Ethereum price has two strong support walls at $2.500 and $2.400. We don’t expect ETH to drop below these lines any time soon. It is pretty likely that the number 2 crypto will bounce up from these levels and retest $2,700 again.