Ethereum Price Analysis: Is ETH Primed for Recovery Following 8% Weekly Correction?

As with stock markets, cryptocurrency had a rough day yesterday. Ethereum lost approximately 9% of its value and the bears drove the price towards the support level at $2,800.

Technical Analysis

By Grizzly

The Daily Chart

Ethereum entered a correction phase on a daily basis after failing to break through the Fibonacci Retracement barrier at 0.618. The bullish pattern it is currently in is forming with higher highs than lows. The main question is whether bears would allow $2800 support to be considered a higher level of support.

A retesting of horizontal resistance within the range $3500-3600 would be possible if this happens. The price could rise to $4000 if it breaks and forms another higher high. Although sellers still have the upper hand, it seems that the downtrend momentum has slowed somewhat.

Support Key Levels: $2500 & $2300

Resistance Key Levels: 3300 & 3600

Source: TtradingView

Moving Averages

MA20: $3030

MA50: $3036

MA100: $2907

MA200: $3470

The 4-Hour Chart

ETH trades below the descending line (marked in red) and the Ichimoku Cloud. This acts as a resistance. It is amazing that the downward momentum gradually drops in this timeframe. If ETH holds support at $2800, and builds a higher peak in this zone then one can expect bulls to retest resistance at $3000 which is the main barrier in a lower timeframe.

Source: TradingVIew

Analyse of the chain

Exchange Supply Ratio

The Exchange Supply Ratio can be described as the exchange reserve divided with the total supply of a particular asset like bitcoin.

The chart shows that despite price drops, this metric continues to show a downward trend. This is similar to what we’ve seen in past uptrends. Investors are not willing to deposit tokens onto exchanges at the moment.

Source: CryptoQuant
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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.

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