ETH Tests $1.2K, is a Reversal Inbound? (Ethereum Price Analysis)

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The cryp­to mar­ket is recov­er­ing from its recent sharp col­lapse. Alt­coins and ETH have out­per­formed Bit­coin in recent days. Buy­ers were able to keep the price above $1,000. But can this upward trend last longer con­sid­er­ing the macro?

Technical Analysis

By Griz­zly

The Daily Chart

Ether has bro­ken down sig­nif­i­cant sup­port lev­els on the dai­ly time­frame, which are now act­ing as resis­tance. Hor­i­zon­tal lev­els at $1,300, $1,500 and $1,700 are a the poten­tial chal­lenge for the ETH recov­ery. In the mean­time, the inter­sec­tion of the descend­ing line and hor­i­zon­tal resis­tance (in yel­low) at $1,700 has cre­at­ed a resis­tance zone (in red). Sup­pose the bulls are still deter­mined to con­trol the mar­ket in the short term. In that case, the range between $1600 and $1700 appears to be a strong barrier.

In the bear­ish sce­nario, ETH has strong sup­port in the area around $700-$900. The mar­ket now needs a pos­i­tive exter­nal force as a cat­a­lyst. The ETH 2.0 merge seems like the most like­ly upcom­ing event to consider.

Key Sup­port Lev­els: $900 & $700

Key Resis­tance Lev­els: $1300 & $1500 & $1700

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Source: Trad­ingView

Mov­ing Aver­ages:
MA20: $1335
MA50: $1734
MA100: $2401
MA200: $3040

The ETH/BTC Chart

The sit­u­a­tion against BTC seems to be dif­fer­ent. As men­tioned, alt­coins out­per­formed BTC recent­ly, which is also evi­dent in this chart. Buy­ers were able to move for­ward with hor­i­zon­tal resis­tance at 0.058 BTC. How­ev­er, the over­all struc­ture is still bear­ish. Unless the bulls can push the price above the hor­i­zon­tal resis­tance at 0.065 BTC, one can not hope for a change in the trend.

Key Sup­port Lev­els: 0.050 BTC & 0.0.045 BTC
Key Resis­tance Lev­els: 0.055 BTC & 0.06 BTC

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Source: Trad­ingView

On-chain Analysis

Fund Holdings

Def­i­n­i­tion: The total amount of coins held by dig­i­tal assets hold­ing such as trusts, ETFs, and funds – this is a proxy for indi­rect invest­ment or demand for ETH.

Cur­rent­ly, the num­ber of coins they held, which was con­stant dur­ing the fluc­tu­a­tions of 2021 and ear­ly 2022, increased in the first down­ward wave. They prob­a­bly con­sid­ered this price drop as an oppor­tu­ni­ty to buy at that time. But then, with the release of macro­eco­nom­ic bad news and fears of a reces­sion, their sup­ply reached its low­est lev­el in two years.

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Source: Cryp­to­Quant
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Dis­claimer: Infor­ma­tion found on Cryp­toPota­to is those of writ­ers quot­ed. It does not rep­re­sent the opin­ions of Cryp­toPota­to on whether to buy, sell, or hold any invest­ments. You are advised to con­duct your own research before mak­ing any invest­ment deci­sions. Use pro­vid­ed infor­ma­tion at your own risk. See Dis­claimer for more information.

Cryp­tocur­ren­cy charts by TradingView. 



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