ETH Facing Crucial Support, Is Dump to $1000 Next? (Ethereum Price Analysis)

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As pre­dict­ed, the FOMC-man­dat­ed 75 bps rise neg­a­tive­ly impact­ed tra­di­tion­al and cryp­tocur­ren­cy mar­kets. Ethereum (ETH) dived 13%, drop­ping towards the $1200 lev­el, record­ing its low­est lev­el since mid-July.

Technical Analysis

By Griz­zly

The Daily Chart

ETH is cur­rent­ly trad­ing amid a crit­i­cal sup­port zone between $1230 and $1280 (in green), along with the 0.618 Fib Retrace­ment lev­el at $1210 (in yel­low). After reach­ing this Fib lev­el, ETH quick­ly climbed back by 6% ear­li­er today.

In case this lev­el breaks down in the com­ing days, then $1000 like­ly becomes the next sig­nif­i­cant sup­port. Until ETH clos­es below $1,210, this sce­nario is not trig­gered. Alter­nate­ly, if the bulls break above the range, the next major resis­tance is at $1420 (in red).

Hopes for a trend rever­sal are revived if they close a can­dle above this lev­el. If not, the upward rise might be seen as a pullback.

Key Sup­port Lev­els: $1210 & $1000

Key Resis­tance Lev­els: $1420 & $1650

Dai­ly Mov­ing Averages:

MA20: $1536
MA50: $1633
MA100: $1468
MA200: $2016

The ETH/BTC Chart

Yes­ter­day, after more than two months, ETH / BTC trad­ing pair closed below the 200-day mov­ing aver­age line (seen in white). Giv­en the dom­i­nance of the bear­ish sen­ti­ment of the mar­ket, there is a con­sid­er­able like­li­hood that 0.065 BTC (in green) will be retest­ed as support.

The bulls are like­ly going to defend that lev­el. This sce­nario will be invalid if the price retraces above the dai­ly MA200 at 0.069 BTC.

Key Sup­port Lev­els: 0.065 & 0.06 BTC

Key Resis­tance Lev­els: 0.069 & 0.075 BTC

On-chain Analysis

Active Addresses (SMA 30)

Def­i­n­i­tion: The total num­ber of unique active address­es, includ­ing senders and receivers.

On-chain data shows that bull­ish trends are fre­quent­ly, though not always, fol­lowed by an increase in the num­ber of active address­es on the net­work – a sign of growth in on-chain activity.

Even if this index has mar­gin­al­ly risen over the last sev­er­al days, it is still not notice­able. On the oth­er hand, the like­li­hood of a price decrease will increase if this met­ric declines once again.

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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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