ETH Facing Huge Resistance, Is Major Correction Inbound Before $2K? (Ethereum Price Analysis)

After sev­er­al attempts, the bulls final­ly pushed the price above the 100-day mov­ing aver­age line. How­ev­er, Ethereum is still strug­gling to break above the major resis­tance area between the $1,700 – $1,800 range.

Technical Analysis

Tech­ni­cal Analy­sis By Griz­zly

The Daily Chart

Sup­port and resis­tance lev­els have appeared on the chart in the dai­ly time­frame using the Fibonac­ci retrace­ment tool, extend­ing from the all-time high to the last real­ized bot­tom at $880 record­ed in June.

As can be seen, the bulls quick­ly broke above the first resis­tance, which was at the 0.236 Fib lev­el (in blue) around $1300. Yet, it seems that the 0.382 Fib lev­el (in yel­low) has become a direct obsta­cle for the bulls. His­tor­i­cal­ly, this lev­el has played an impor­tant role: In the ral­ly of 2021, the ETH price got stuck below it for three weeks.

Look­ing over the next short-term, there are two pos­si­ble scenarios:

First and fore­most, ETH breaks and clos­es above the $1800 mark and tar­gets the next sig­nif­i­cant lev­els around $1,900-$2,000. There, it will turn into a bull-trap – long liq­ui­da­tions and back down for a retest of the crit­i­cal lev­el at $1,300.

In the sec­ond sce­nario, ETH breaks $1800 and cracks above the hor­i­zon­tal resis­tance at $2160 (in white), and moves towards the red-marked descend­ing line, which over­laps with the 0.618 Fib lev­el (in green). There, it’s expect­ed that ETH will get a rejec­tion on its first attempt. In this sce­nario, since the 200-day mov­ing aver­age is reclaimed, we can def­i­nite­ly state that the bulls had regained mar­ket control.

Key Sup­port Lev­els: $1500 & $1350

Key Resis­tance Lev­els: $1800 & $2160

Dai­ly Mov­ing Averages:

MA20: $1614
MA50: $1349
MA100: $1656
MA200: $2280

The ETH/BTC Chart

Against Bit­coin, as expect­ed, the bulls were able to pull the price towards the descend­ing line resis­tance (in yellow).

Since the bear­ish diver­gence (in red) has been wit­nessed by the RSI indi­ca­tor, it is expect­ed that the bulls will rest around this area.

From below, it should be not­ed that the bulls must defend the hor­i­zon­tal lev­el at 0.07 BTC, while there’s poten­tial that the bears can dom­i­nate the mar­ket by form­ing a low­er low. If the 0.07 BTC lev­el breaks down, ETH is expect­ed to extend towards the next sup­port at 0.065 BTC (in green).

Key Sup­port Lev­els: 0.07 & 0.065 BTC

Key Resis­tance Lev­els: 0.075 & 0.08 BTC

On-chain Analysis

Exchange Net­flow: Def­i­n­i­tion: The dif­fer­ence between coins flow­ing in and out of the exchange. Inflow – Out­flow = Netflow.

A pos­i­tive val­ue indi­cates that the reserve is increasing.

The price has reached a sol­id resis­tance from a tech­ni­cal point of view, so investors are cur­rent­ly look­ing at Ethereum with more skep­ti­cism and cau­tion. Fur­ther­more, this has result­ed in the met­ric not chang­ing much. If this resis­tance gets bro­ken, Ethereum will be with­drawn from the exchange, and the his­togram bars will turn red.