Ethereum price remains on a bearish trend despite the rebounding observed in recent sessions. Since mid-August when it hit a three-month high, it has been recording lower highs and lower lows. A look at both the fundamentals and technicals points to a continuation of the bearish trend.
Market sentiment
A look at the crypto fear & greed index, which tracks the main emotion driving the cryptocurrency market, shows some slight improvement. Last week, it was at an extreme fear level of 22 as the collapse of FTX and its sister trading firm- Alameda Research led to a risk-off mood.
It has since improved to a fear level of 26 in the previous session and an even lower level of fear at 29 on Wednesday. A figure closer to zero is a sign that crypto traders are more risk averse.
Even with the observed improvement, fear remains the key emotion driving the market. In fact, the last time that the crypto fear & greed index was above the neutral level of 50 was in early April. At that point, Ethereum price was trading above the now evasive zone of $3,500. From this perspective, ETH/USD price gains will likely remain curbed in the short term for as long as the bearish market sentiment persists.
Ethereum price prediction
Ethereum price has been in the green over the past two sessions; holding steady above the crucial level of 1,200. As the bulls strive to defend this resistance-turn-support zone, the largest altcoin is hovering around the 25-day EMA around 1,250. Nonetheless, it remains below the 50-day EMA.
In the short term, the range between 1,200 and 1,332.21 will be worth watching. While I forecast further rebounding, I am of the opinion that Ethereum price gains will be curbed at 1,426.51. Above that level, this bearish thesis will be invalid. On the lower side, a retreat will have the bulls defend the support at 1,130.15.
