Ethereum has lost 20% of its value over the past three days, and has performed worse than Bitcoin. The panic sell has intensified due to speculations about the Celsius network liquidity crisis. Is there a bottom?
Technical Analysis by Grizzly
The Daily Chart
The bears may push the price below $1,700, which is the key support, in the daily timeframe. (The yellow line on the chart shows this). ETH trades at its lowest level since March 2022.
It is difficult to say whether the market has reached its bottom at this time. The next level of support will be around $1300 after the market broke below $1540 horizontal support. If the $1300-$1500 zone, which includes 2018’s previous ATH (which is not being absorbed by the current selling pressure), does not support the current selling pressure, ETH may retest the $1,000 level for the first time in more than 500 days.
Key Support Levels: $1300 & $1040
Key Resistance Levels: $1500 and $1700
MA20: $1797 MA50: $2177 MA100: $2593 MA200: $2985
The ETH/BTC Chart
As we expected, and as mentioned in our previous price analysis (in yellow), the critical level of 0.055 BTC was broken down.
Market sentiment has turned bearish overall, with no sign of a trend reversal. Support at 0.05 BTC in green will likely be retested if the negative sentiment persists. As you can see in the chart below, the broken support levels have become strong resistance levels.
Key Support Levels: 0.050 BTC & 0.0.045 BTC
Key Resistance Levels: 0.06 BTC and 0.055 BTC
On-chain Analysis: The New Contracts (SMA7)
Definition: The number or the total of contracts that have been created in a network.
Developers, along with investors and traders, seem to be paying attention to the Ethereum network’s situation these days. This is another bearish sign.
One possible reason could be dapps or network participants. They likely won’t launch new projects on ETH networks in these bearish economic conditions.
Marla Brooks – Financial Analysis
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