- Ethereum could find a floor at $1,900
- ETH’s $3,000 support seemed strong earlier this year, but has since been lost
- Ethereum underwent a death cross in late January and could be gearing up for more losses amidst global geopolitical tensions between Ukraine and Russia
- $2,150 could hold for Ethereum forming a double bottom
The second most valuable digital asset according to market capitalization, Ethereum (ETH), could bottom at the $1,900 price area. This estimate was provided by Crypto analyst Timothy Peterson of Cane Island Alternative Advisors, who also explained that Ethereum has an 84% chance of being valued below $3,000 any time between February 28th and December 31st, 2022.
Ethereum Could Increase by 2x After $1,900
Mr. Peterson shared his analysis via the following Tweet which also pointed out that Ethereum could increase by a factor of two, twelve months, or more, after hitting the potential bottom of $1,900.
I definitely blew it on this one. After further research I re-calibrated and now it’s 84% chance of below 3k at any time between Feb 28 – Dec 31.
Plus side: $1900 looks like a floor. Then 2x from there in < 12 mos. https://t.co/atRI4mlnKq
— Timothy Peterson (@nsquaredcrypto) February 20, 2022
What the Ethereum Daily Chart Says
A quick glance at the daily ETH/USDT chart reveals that Ethereum is very much in bear territory after experiencing a death cross in the dwifinal days of January as seen in the following chart.
Also from the chart, it can be observed that Ethereum (ETH) is trading below the 200-day moving average (green), thus confirming the bearish scenario. Additionally, the histograms on Ethereum’s daily MACD indicate continuous selling pressure for the four days.
In terms of resistances, the once formidable $3,000 support is now Ethereum’s newest price hurdle on the upside, with January’s low of $2,150 offering support moving forward.
Russia/Ukraine Standoff Continues to Negatively Affect the Crypto Markets
However, the daily MFI and RSI are in oversold territory and could foreshadow a potential bounce for Ethereum as the world digests news of President Putin ordering troops into ‘separatist-held’ Eastern Ukraine.
The move by President Putin comes after he signed decrees formally recognizing the independence of the Donetsk People’s Republic and Lugansk People’s Republic, from Ukraine.
Consequently, Bitcoin, Ethereum, and the entire crypto markets have been negatively affected by the geopolitical tensions brought about by Russian troops entering the new republics, as NATO and the United States oppose the move.
Ray Schuetz received a Masters Degree in computer science from The University of Texas (Austin). Ray has been working as a full-time blockchain consultant for the past 3 years. In his spare time, Ray enjoys writing for EthereumCryptocurrency.com and other crypto news publications.