Ethereum Technical Analysis: ETH Crashes Towards $3,400 Psychological Level
Daily Ethereum ETH Price Analysis
- Ethereum price has reversed the parabolic SAR from positive to negative.
- The 20-day SMA has stopped the ETH downtrend.
- The 20-day SMA has reversed from support to resistance.
- The MACD has flipped from bullish to bearish.
- The relative strength index (RSI) still shows that price has room to drop.
Between May 12 and May 17, the Ethereum price has crashed from $4,180 and $3,300 - losing almost $880 in its overall valuation. Prior to that, ETH had jumped from $1,400 to $4,175, since March 1, 2021 to May 11. Let’s take a closer look with technical analysis.
Ethereum Price Recovers Above $3,450
Looking at the Ethereum price daily chart, ETH has flashed multiple sell signals:
Image: ETH/USD daily
On the downside, Ethereum price has an immediate and critical support wall at the 20-day SMA ($3,350). Previously, at this level, >35,000 addresses had purchased almost 1.75 million ETH tokens.
Mike Novogratz: Ethereum Could Go Higher
Billionaire investor and crypto expert Mike Novogratz recently said that Ether has more upside potential after its meteoric rise to a new all-time high of $4,362 earlier this month. In an interview with New York Magazine, the founder and CEO of digital asset merchant bank Galaxy Digital unveiled the factors that keep him bullish on ETH.
We already had payments and stable coins that really kind of gave Ether the kick last year. But then all of a sudden, you have decentralized finance (DeFi) and NFTs (non-fungible tokens) both on Ethereum at the same time roughly, with wild accelerating growth. And you start believing, hey, this will be the supercomputer that authenticates all this stuff that’s happening.
Novogratz said that the leading smart contract platform could potentially grow over 30% from its current value of $3,825.
You know, it’s dangerous to give predictions on the highs. But could it get to $5,000? Of course it could.
Amid the rapid rise of the broader crypto market, Novogratz highlighted that he more than doubled his investments in the emerging space. He said that the ongoing crypto boom is not going to happen regularly. In his opinion, the shift from "not-an-asset-class to an asset class only can happen once."
Ethereum Price Is Expected To Reach These Levels
If the market sentiment continues to be negative, the Ethereum price will likely drop to the 50-day SMA.