Ethereum is down today and the price action does not look good – just the opposite. While at major support given by the round $2,000, the price action remains heavy as long as it stays below the blue bearish trendline seen in the chart below.
Bitcoin is very much responsible for the bearishness seen in the cryptocurrency space. As it currently struggles at the $32,000 level, Bitcoin triggered a massive move lower in other digital assets, such as Ethereum, Doge, or Cardano.
An interesting aspect regarding Ethereum is its price correlation with the price of GPUs. Chips have seen a sharp increase in demand as they are used in computers to mine cryptocurrencies, such as Ethereum. A close look at the price of used GPUs and the price of Ethereum reveals a tight, direct correlation. It would be interesting to see if the prices of GPUs will decline too, now that Ethereum is down sharply from the highs. So far they did not, fueling hopes of Ethereum bulls that the market will reverse.
Ethereum Technical Analysis
Ethereum looks weak here and bears may want to wait for a daily close before going short with a stop at $2,400 and a target below $1,250.
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Ethereum Price Forecast
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