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Technical Analysis for ETHUSD for 18th January 2022

Ethereum Falling, Will Bears Drive ETH Back to $3k?

NFTs are driving Ethereum to the wall, worsening user experience if Gas is anything to go by. A simple transfer costs roughly $40 and is even more expensive to mint or deploy a DeFi smart contract.

Past Performance of ETH

Strong fundamentals may back Ethereum, but holders and traders are under pressure. As per the candlestick arrangement in the daily chart, sellers are in the driving seat, sharply reversing gains made in the first half of January. Already, there is a conspicuous bear candlestick wiping out the weekend's progress and risks triggering another round of price dumps.

Ethereum Technical Analysis

At the time of writing, sellers are in the driving seat. Following the bear engulfing bar of January 17, risk-off sellers may unload on pullbacks below last week's highs and the middle BB at around $3.45k as they set sights on January 2022 lows of around $3k. Despite bears taking charge, a close above last week's high and the flexible resistance level may lift ETH towards $3.6k, presenting an opportunity for risk-averse traders waiting for a bullish breakout pattern confirming gains of January 11.

What to Expect of ETH

Confirmation of January 11 losses may see ETH bears flow back, possibly forcing a dump back to $3k as sellers press on. Conversely, the trend will change to swing for buyers if bulls arrest the sell-off, pushing prices above the $3.45k resistance line. Aforementioned, ETHUSDT prices could, in case of a high volume close above last week's highs, soar to $3.6k in a relieving rally.

Resistance level to watch: $3.45k

Support level to watch: $3k

Disclaimer: Opinions expressed are not investment advice. Do your research.

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