Ethereum price appeared primed for a rally but the Fed threw that plan to pieces and now ETH price action needs to be corrected further to lure investors back in.

While the pullback is painful for the bulls, there seems to be light at the end of the road as a very thick support band is being triggered along with some fundamentals. Chances are that ETH price will fall another 20% towards $2,000 next week, but will then start an uptrend as bulls step in at historical levels.

ETH price $2,000

Ethereum price fell about 50% after testing its all-time high in December. The test was subsequently rejected on the downside, triggering a sell-off that is expected to continue into next week. Also this week, bulls attempted to break the trend but were rebuffed again due to resistance at $2,695. It shows the importance of marking historical levels and avoiding falling into a bullish or bearish trap.

Get ready for a deeper drop in Ethereum price to find support. The next support is at $2,000 – a historic level and slightly lower at $1,929. This area will provide bulls with plenty of entry opportunities as long as the RSI then trades in the oversold territory.

ETH/USD weekly chart. Source: TradingView

Next week could see a quick turnaround as bulls rush in to briefly push ETH price towards $2,695. With this move, the price can rally as high as $3,018 while avoiding a death cross formation as the 55-day SMA will fall below the 200-day SMA next week.

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According to Fxstreet