Here is the critical support for ETH after a weekly drop of 14% (Ethereum Price Analysis)

After a prolonged period of consolidation with no clear direction, the cryptocurrency market has finally experienced a correction, with most coins losing value. Ethereum was no exception, as its price plunged 14%, hitting a significant support zone.

Technical analysis

By Shayan

the daily chart

Ethereum recently topped its previous biggest swing at $2K due to its impulsive uptrend, providing significant bullish sentiment by signaling a positive trend reversal. However, the price quickly formed a head and shoulders reversal pattern and was rejected, resulting in a 14% drop.

However, the price has now reached a crucial support region comprising the 50-day moving average of $1,800 and the 100-day moving average of $1,705.

Therefore, price action within the $1.7K-$1.8K range should be closely monitored, as a break of this critical support zone will likely determine the near future direction of Ethereum. If the cryptocurrency breaks below this vital area, its previous large low of $1.4K will serve as major support for the price over the medium term.

The 4 hour chart

According to the 4-hour time frame, the Ethereum price rally came to an end when it attempted to break out of the upper trend line of the channel at $2.1K. As a result of an impulsive decline, the Ethereum price has now reached the mid-channel boundary, an important support/resistance region, and is struggling to break through it to the downside.

If the price falls below this level, it could trigger a downtrend towards the $1,700 mark. However, if the cryptocurrency finds support and reverses the downtrend, a rally towards the upper threshold will be the most likely scenario for Ethereum in the near term.