Yesterday’s announcement of the US inflation rate resulted in a sharp drop in market prices. Ethereum dropped briefly by $103, but bulls kept the price above $1,000.
The Daily Chart
ETH trades above (in yellow), the descending line on the daily timeframe. The RSI 14D Index has not been able break above the dynamic resistance (in yellow), which was rejected in the baseline, indicating the weakness of the bulls in this market. The price must remain above $1,000 in order to push for a short-term rally. A sell-off at this level is much more likely.
The bullish scenario calls for buyers to break the $1300 horizontal resistance after two failed attempts. The RSI would be pushed into the bullish zone by this and could lead to a rally of up to $1700.
Key Support Levels: $1000 and $880 Key Resistance Levels : $1300, $1500, & $1700
Daily Moving Averages MA20: $1139 MA50; $1367 MA100, $2006 MA200 : $2504
The ETH/BTC Chart
The price has remained below the horizontal resistance of 0.06 BTC (in green). Similar to the USD pair ETH failed to break the first key resistance level in its two previous attempts. Bitcoin can rally if it can break the resistance levels of 0.06 BTC or 0.065 BTC. The bulls must also defend the horizontal support of 0.055-0.05 BTC. As long as the price remains above the support zone, the forming structure appears bullish.
Analyse of the On-chain
Exchange Supply Ratio
It is the ratio of tokens stored in exchange wallets to total supply.
This indicator showed an upward trend during the two recent market crashes. It confirms panic among investors who have been selling their assets to fund the panic. This index fell slightly last week, which caused a temporary drop in selling pressure. This metric has seen another increase due to investors reacting to macroeconomic factors (CPI News).
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