ETH Managed to Reclaim $2000, But Is the Storm Over? (Ethereum Price Analysis)

Ethereum recovered about 14% of its $1,800 lowest level after the sharp decline in crypto markets three days back. The daily candlesticks structure is still weak.

Technical Analysis

Technical Analysis by Grizzly

The Daily Chart

The daily price of $1700 has been considered a long-term support level to ETH. This has prevented further price drops in May and June 2021, July 2021, and July 2021.

The ETH price has not reacted to this level yet. However, it did not bounce back like the previous three times in 2021. It is important to remember that macroeconomic conditions have changed from last year and are affecting crypto and global risk assets.

It seems that there are two scenarios, given the current price action.

Scenario A. Bulls push the price higher than the horizontal resistance at $2450. ETH forms a local low in the range $2500 – 3000. Technical analysts believe that the downtrend has ended.

Scenario B. Price can test the horizontal support at $1700. This scenario is likely to result in the critical support level being broken down. The more resistance or support levels are tried, the weaker they become.

Key Support Levels: $1700 & $1500

Key Resistance Levels: $2200 and $2450

Moving Averages

MA20: $2545

MA50: $2925

MA100: $2878

MA200: $3347

The 4-Hour Chart

ETH is forming a bullish structure over the 4-hour timeframe, with higher highs than lows. The main obstacle at the moment is $2145, which acts as static resistance.

To maintain bullishness, ETH must surpass this level and make a higher high. Bulls may also face serious challenges if they cross this level with the Ichimoku.

On-chain Analysis: Total Exchange Netflow

Definition: The difference in the amount of coins that flow into and out exchanges (Inflow – Outflow = Netflow). Positive values indicate that reserves are growing.

Many investors have moved their coins to exchanges in response to the steep drop. This is often accompanied by significant selling pressure in markets.

Speculators are more cautious as long as the bars of histogram do not turn red. Market players should withdraw their coins from the exchange in order for the market to move up. This will create a’supply shock’.

Read More

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Close Bitnami banner
Bitnami