In our previous Ethereum analysis ETH Testing A Critical Level. Can Price Hold This Support? we talked about the Ethereum $2,672 key support level on the 4-hour timeframe and why it was so important for the ETH bulls to defend it.
Well, the ETH price has failed to stay above this key support on the 4-hour timeframe and is now trading below it, potentially turning that previous support into New Resistance for Ethereum.
And with the price now below this new resistance, there is a very high probability that we might see more selling pressure come into the market in the coming days.
In this Ethereum analysis, we will be talking about the key levels to keep an eye on as well as the next key support to watch for in the coming days.
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Ethereum Bearish Pressure Increasing
The price break below the $2,672 key support on the 4-hour timeframe is a clear indication that the ETH price is still weak.
This weakness could translate to us seeing more movement to the downside in the coming days. But how much lower can we expect the Ethereum price to trade to before finding new support?
Well if you look to the left, we can easily spot an identical sell-off like this played out in the past.
During this sell-off, Ethereum broke below the $2,672 key support and then crashed more than -18% in a matter of days before bouncing back up.
This means that Ethereum could crash towards this level again or even below it in the coming days.
The Next Key Support For Ethereum
Now we know how far the Ethereum price fell the last time it broke through the $2,678 key support, we can clearly spot the next key support the ETH price might trade to and respect in the coming days.
That key support is the Ethereum previous low at $2,188. This is about a -18% dump in the price for Ethereum with a very high likelihood of Ethereum even breaking through.
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