Ethereum price has bounced off the support zone after declining by over 12% since Saturday. Cryptocurrencies, just like other markets, are reacting to the Evergrande debt crisis. Investors are concerned that the impact of the debt crunch by the Chinese property developer will spill over to other assets. Despite the plunge, Ethereum’s trading volume has risen by 62.73% over the past 24 hours.
Ethereum price prediction
Ethereum price has extended the losses recorded over the weekend. At the time of writing, it was down by 7.28% at 3,085.67. Since Saturday, it has plunged by about 12.80%. While the bears’ attempt to break out of the support zone at 3,000, it is still about 23.47% lower than where it was at the beginning of September.
The crypto is rebounding after entering oversold territory with an RSI of 17. It is currently trading below the 25 and 50-day exponential moving averages with an RSI of 25. Based on the technicals, it will likely record curbed gains in the near term.
Ethereum price will likely rebound further as the bulls strive to push it back above the month’s crucial support level of 3,250. However, along that path, it will probably find resistance along the prior support-turn-resistance level of 3,146.79.
A move above 3,250 will place the resistance level along the 25-day EMA at 3,281.98. Notably, this thesis will be invalid if the bears manage to break out of the support zone at 3,000.