Ethereum Price Prediction as ETH Falls 10% – Time to Buy the Dip?
The Ethereum price has dropped to $1,664 today, representing a 0.4% fall in 24 hours and a 10% loss in the past week.
ETH is also down by 11% in the last 30 days, with the altcoin's losses coming amid a period of market-wide negativity that has been caused macroeconomic fears (e.g. China) and reports that SpaceX has sold its BTC holdings.
However, ETH remains up by 39% since the beginning of the year, with the altcoin's fundamentals remaining as strong as ever, despite recent losses.
As such, ETH can be expected to recover in due course, with the current downturn providing investors with a prime opportunity to buy the dip.
A buying-the-dip opportunity is indicated very clearly by ETH's chart and technicals, with the coin's relative strength index (purple) having plunged below 30 in recent days.
This means the coin has been strongly oversold relative to its recent levels, something which is also indicated by the fact that its 30-day moving average (yellow) is about to drop below its 200-day average (blue).
Once this happens, and once the 30-day average finds itself at some distance below its 200-day counterpart, then ETH should make a recovery.
That the coin won't fall much lower is suggested by its medium-term support level (green), which has remained stolidly at around $1,660 for a couple of months now.
As mentioned above, investor appetite for risk-on assets (including cryptocurrencies) has been dampened in recent weeks by concerns surrounding the state of the Chinese economy, which has been slowing.
This has bled into the cryptocurrency market, and when combined with the apparent SpaceX selloff and ongoing bearishness, the effect has been to depress cryptocurrency prices further.
Fortunately, Ethereum is one of the strongest
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