April was a brutal month for crypto and Ethereum in particular. Last night, the ETH price dropped from its highest point at $3580 to $2700. Are we expecting May to perform better than April?
Technical Analysis by Grizzly
The Daily Chart
Below is a chart showing FTX’s perpetuals’ exchange data. ETH trades on the top of the long-term ascending green line.
Based on the five previous attempts, this trend line has supported the price since January 2021. Each of these five attempts saw ETH experience a bullish leg.
ETH is currently on its sixth attempt to climb the line. This includes the blue horizontal level that intersects with $2,500’s dynamic trend line. A failure could prove to be disastrous for ETH.
It is important to remember that buyers takers are less dominant as shown by data from Binance. The chart below shows that past uptrends were accompanied by an increase in buyer dominance. This is highlighted in yellow. There is currently no positive signal.
Key Support Levels: $2800 , $2500 , $2300
Key Resistance Levels: 3000, 3300
The 4-Hour Chart
ETH has been supported by the Fibonacci Retracement Level at 0.786 for the past four hours.
The Fibonacci level of 0.618 acts as a solid resistance level. It currently stands at $2900. If ETH is able to break above the blue falling wedge, it could signal a reversal. Bullish sentiment can be boosted if ETH reaches $3,000 at a higher level.
Analyse of the On-Chain
Number of Active Addresses (14d Average Moving Average).
Definition: The number or unique addresses that are active in the network. This can be either the sender address, receiver, or both. Only addresses that were confirmed to be active in transactions are counted.
This metric is often used to track price trends and can be considered an indicator of the health of the network. If the price rises, you can expect an increase of transactions on the network which in turn increases the number active addresses. After reaching its record high in November, this metric has been in a downward trend.
Marla Brooks – Financial Analysis
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