Ethereum is closing in on its eighth consecutive red week. In 2022, high-risk assets such as stocks and cryptos are facing a catastrophic year. But what about the next major support for ETH.
Technical Analysis by Grizzly
The Daily Chart
It raised the possibility for an uptrend after Ethereum cleared its key dynamic resistance in March. However, the market turned bearish in April and ETH plummeted unexpectedly.
The price is currently back upon the blue descending line, which acts as support. This structure indicates that the bulls didn’t have enough power to push the price higher.
This weakness in trend can also be seen in daily candlesticks. It was exactly one year ago on May 19, 2021 that the price reached the green demand area where high buying pressure caused daily candles to close with a bullish wick (towards). This area is located between $1300 and $1500, as can be seen.
However, if bulls can regain the resistance level of $2450, then the bearish momentum in the short- and long-term will shift.
The Directional trend indicator (in purple), moves below the red line. This indicates that the bears still control the market. This indicator can be used to monitor the dominance of bulls and bears in the market. If the index returns above the horizontal white line, it means that bulls are back.
Key Support Levels: $1700 & $1500
Key Resistance Levels: $2200 and $2450
The ETH/BTC Chart
The BTC pair chart shows that the price is close to a horizontal support level of 0.065. This has supported the price twice since 2022.
This level is likely to be tested again in the near future. If bulls are able to defend it another time there is a chance of moving up towards resistance at 0.07. But, what if the bulls are overwhelmed by the bears? If that happens, stop losses below 0.065 could be activated, which would likely accelerate the bearish trend in ETH against BTC.
Key Support Levels: 0.065 BTC & 0.06 BTC
Key Resistance Levels: 0.07 BTC and 0.072 BTC
Analyse of the On-chain
Number of addresses with balance equal to or greater than 100
Definition: A unique address that holds at least 100 coins. Only externally owned addresses (EOAs) are counted. Contracts are not included.
The chart shows that the number of addresses holding at least 100 Ethereum (green circle in the chart) has been increasing since the market crash. The price rose shortly after this metric began to rise. The accumulation of this indicator has been less than in the previous two instances.
If the accumulation increases continue, it could lead to a supply shock or price appreciation, even for a brief correction.
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.