Ethereum price has extended its losses into the new week; a trend observable in other cryptocurrencies. The subsequent fear among investors is evident in the fear & greed index. Indeed, the measure of the key emotion driving the market has exhibited extreme fear for over a month now.
In Monday’s session, it was at 13; a slight improvement from Sunday’s lower reading of 11. The closer the reading is to zero, the more worried investors are about the prices dropping further. While Ethereum and other cryptocurrencies will likely reverse some of the day’s losses in the near term, they will probably remain in the bear market for a while longer.
Ethereum price prediction
ETH has begun the week in the red; falling to its lowest level in six months at 2,219.29. Since Monday last week, the leading altcoin has been in the red for seven out of eight sessions. During that time frame, it has dropped by 34.82%. On a broader scale, it has fallen by 54.69% since early November when it hit its all-time high at 4,874.58.
As at 11:10 a.m GMT, Ethereum price was down by 11.39% at 2,254.04. The daily chart highlights the continuation of the bearish outlook as it continues to trade below the 25 and 50-day exponential moving averages.
With an RSI of 23, the crypto is in the oversold territory. In my opinion, it is due for a corrective rebound even as it remains under pressure in the ensuing sessions.
From this perspective, it will likely hover around its current level at around 2,261.61 as the bulls gather enough momentum to rebound further. To get to the next target at the crucial level of 3,000, there will need to be enough buyers to break the resistance at 2,710.89. On the flip side, a move below it current level may have the bulls defend the support at 2,000; a level last hit in late July 2021.