Ethereum is Obeying Our Last Price Prediction: ETH to $1400 Soon if These Two Things Don’t Happen

21 Sep 2023 by Crypto Presale 2 min read

The recent price increase that happened last week didn’t last long, as most cryptocurrencies are back to their bearish state, Ethereum (ETH) included. In the last 24 hours, the Ethereum price has dropped by 2.8%, 3% in the last 7 days, and 3.58% in the last 30 days. This shows that the midterm outlook for ETH remains bearish.

Negative sentiment around ETH has been significantly influenced by ongoing SEC cases against Coinbase and Ripple, even though these cases don't directly involve ETH. The SEC's classification of ETH as a security has made it sensitive to case-related discussions and legal developments. This classification could also complicate the launch of ETH-Spot ETFs, which many investors have been eagerly awaiting. Concerns arise due to the delays in launching BTC-Spot ETFs. The resolution of these issues could hinge on the development of a comprehensive US crypto regulatory framework, which may depend on political factors, including the outcome of the US presidential Election.

Technical Analysis

Daily Timeframe

Source: TradingView

In our last ETH price analysis, we looked at two possible ETH price movements. But now, it’s clear that ETH has chosen a side, and it's heading towards a new low. In the daily timeframe, ETH has broken below a major support zone around the $1,600 region, and there have been a series of rejections as sellers try to keep the price down. Right now, ETH is forming a major bearish engulfing candle; if this candle closes being bearish, this might confirm a possible bearish continuation. In addition, the RSI is currently at 38%, which shows that the bears are dominant in the daily timeframe. Similarly, both the 50-day EMA and the 200-day EMA have crossed over in something called a ‘death cross’, which confirms that ETH is in a big mess unless there is a major catalyst to turn the price around.

4 Hour Timeframe

Source: TradingView

In the 4-hour timeframe, we've got a clearer picture of ETH breaking below a recent pullback. The RSI is currently at 34.58%, which reinforces the overall bearish state in the daily timeframe. Also, ETH is trading at $1,584, which is below the 50-day EMA price of $1,625 and the 200-day EMA price of $1,671. All these confirm a bearish trend, and with no resistance in sight, ETH might hit the next support level around $1,424 soon.

ETH to $1400 Soon if These Two Things Don’t Happen

Right now, both market sentiment and technical indicators are pointing downward for the ETH price. If that doesn’t change soon, ETH might hit the previous $1,400 and even break below. For this to change, ETH needs a big catalyst to shift the negative sentiment to positive. This can be achieved through a combination of factors, such as the approval of the pending Spot ETF for Bitcoin. This can boost investors' confidence in cryptocurrencies and attract massive capital into the crypto sector.

Also, economic factors such as a reduction in interest rates can be a huge trigger to turn around the bearish state of ETH. However, without these factors aligning positively, ETH's price outlook remains uncertain.

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