Ethereum price analysis: ETH down 6% in the last 7 days, more pain to come?

Ethereum price analysis for Jan 20, 2022, suggests that the world’s second-biggest cryptocurrency has been down by more than 6% in the last 7-days. Does this mean that a downtrend has started? Let’s dig deeper.

The data from CoinMarketCap shows that the trading volume of ETH tokens has been up by 4.21% in the last 24-hours, with a 0.92% decline in trading volume. The price of 1 ETH at the time of writing stood somewhere around $3118 and rebounded after testing $3K. 

As covered by our Ethereum price analysis for Jan 17, Ethereum went below $3300, which is an important area to watch out for. This means that a move towards $3K is definitely possible.

However, there is positive news as well. TheCoinRise reported that the Switzerland arm of Spanish multinational financial institution BBVA has added Ethereum to its crypto trading services, giving increased exposure to the cryptocurrency. 

Ethereum price analysis on the daily chart

As per our Ethereum price analysis on the daily chart, the world’s second-biggest cryptocurrency is aiming for higher prices but is unable to do so. 

As visible on the chart below, the token has been following a downtrend was quite some time as the 50-day and 100-day Moving Averages remain below the price action, as per our Ethereum price analysis. 

Furthermore, the price movement is situated in the lower end of the Bollinger Bands, another bearish scenario for Ethereum.

Source: TradingView

The RSI indicator shows that the selling pressure is higher as recently, Ethereum went into the oversold region. However, the Ethereum price analysis suggests that this is a good buying opportunity for long-term holders.

Source: TradingView

Conclusion

While Bitcoin is stuck between $41K-$43K, the majority of altcoins continue to bleed. It is possible that we see lower prices for Ethereum too. If Bitcoin goes below $40K, Ethereum will certainly go below $3K. Furthermore, Bitcoin has gained ground over ETH in the last 7-days.