The Ethereum (ETH) price has fallen since it failed to reach a new yearly high on November 24.
Despite the drop, ETH remains above the $2,000 level. Will it bounce and attempt to reach a new yearly high, or are more lows in store?
Ethereum Falls Before Yearly High
The technical analysis of the daily time frame shows that Ethereum began an upward movement in October. During the increase, it broke out from a descending resistance trend line that had been in place since the yearly high of $2,140 on April 16.
The ETH price has not returned to validate this trend line as support yet.
While Ethereum approached its yearly high, it failed to reach it. Rather, it created a lower high and a long upper wick (red icon) on November 24. The wick is considered a sign of selling pressure.
The RSI gives mixed readings. The indicator is falling and has reached 50. However, it has also generated a hidden bullish divergence (green), a sign of trend continuation.
What Are the Analysts Saying?
ColdBloodShill stated that the price could return to the $1,900-$2,000 region before resuming its previous bullish trend. He tweeted that:
If $ETH grinds/trades higher this is one of the potential attack points if we see the market move back to the downside.
Satoshi Flipper is bullish for fundamental reasons. He suggested that:
Finally, CryptoBusy noted the long-term resistance at $2,100, stating that the price will likely explode once it breaks it.
ETH Price Prediction: Will Price Hold Above $2,000?
Technical analysts employ the Elliott Wave theory to identify recurring long-term price patterns and investor psychology, which helps them determine the direction of a trend.
The most likely wave count suggests the ETH price is in the C wave of an A-B-C corrective structure (black). The correction comes after a five-wave upward movement that began in October.
Giving waves A:C a 1:1 ratio leads to a low of $1,900, coinciding with the 0.382 Fib retracement support level (white).
If wave C extends to 1.61 times the length of wave A, ETH can fall to a low of $1,760, a decrease of 13% from the current price. This second target would coincide with the 0.618 Fib retracement support level.
Despite this bearish ETH price prediction, a move above the wave B high of $2,136 will mean the correction is over. In that case, ETH can increase by 25% and reach the next resistance at $2,500.
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