Ethereum price analysis: ETH underperformed in January, at a 30% loss

Ethereum price analysis for Jan 31, 2022, brings the end to a painful January for ETH. The world’s second-biggest cryptocurrency saw a massive drop of 30% this month compared to December as it fell from major support of $3,300. Despite ETH being outperformed by BTC, it is to be noted that ETH is not dying a slow death, a topic that TheCoinRise talked about in 2019.

On the other hand, the data from CoinMarketCap shows that the trading volume of Ethereum has declined 5.08% in the last 24 hours. Moreover, the market cap has declined by 2.13% in the same duration. The 24-hour high of the token rests at a price of $2,622.56.

The daily candle for Jan 31, 2022, kicked off at a price of $2601 and reached a daily high of $2608. Furthermore, due to a surge in selling pressure, the token dropped to the daily low of $2476 and at the time of writing, the price of ETH is $2568. On the whole, the price fractal represents a bearish Ethereum price analysis.

Ethereum price analysis on the daily chart

Ethereum price analysis shows that ETH is still above the $2,500 important support level. As per our Jan 26, 2022, Ethereum price analysis, ETH tried to move ahead towards $3K but failed to do so.

Source: TradingView

The price action is currently stuck in the lower end of the Bollinger Bands and if selling volume continues to surge, lower prices might follow and ETH might lose the $2,500 support.

Source: TradingView

The RSI indicator has bounced from oversold levels but the gradient of the line is again turning negative. It is imperative that the line makes higher highs for prices will fall once again.

Conclusion

After being stuck at $2.6K as per our Ethereum price analysis for Jan 30, 2022, ETH dropped to $2.5K. Once this region of support strengthens, the chances of ETH making a move towards $3K are quite high.