ETH Closes Third Red Week in a Row, is $1,000 Coming? (Ethereum Price Analysis)

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Yes­ter­day, Ethereum closed its third con­sec­u­tive week­ly red can­dle. A can­dle­stick with a long upper wick indi­cates that increased sell­ing pres­sure con­tin­ues. In the last two weeks, the price has been trapped between two sig­nif­i­cant lev­els, and break­ing out of this zone would like­ly deter­mine the direc­tion forward.

Technical Analysis

By Griz­zly

The Daily Chart

The descend­ing line on the dai­ly chart high­lights the cre­ation of low­er lows (in yel­low). This struc­ture is bear­ish. How­ev­er, in order to reach low­er lev­els, sell­ing pres­sure must first dri­ve the price below the hor­i­zon­tal sup­port of $1,240 (in green).

This action cor­re­sponds with a break below the descend­ing line, which could trig­ger mul­ti­ple stop loss­es. Should this hap­pen, $1,000 might be in sight.

Alter­na­tive­ly, the asset could dis­cov­er strong sup­port at around $1,240, fol­lowed by a push above the hor­i­zon­tal resis­tance at $1,420 (in red).

Key Sup­port Lev­els: $1240 & $1000
Key Resis­tance Lev­els: $1420 & $1550

Dai­ly Mov­ing Aver­ages:
MA20: $1355
MA50: $1527
MA100: $1488
MA200: $1945

eth_price_chart_0310
Source: Trad­ingView

The ETH/BTC Chart

Fol­low­ing the Merge, the mar­ket struc­ture against Bit­coin is show­ing a remark­able weak­ness. Investors are still hes­i­tant to sell their Bit­coin for Ethereum.

ETH seems more like­ly to keep declin­ing until the descend­ing line (in yel­low) inter­sects with the hor­i­zon­tal sup­port at 0.065 BTC (in green). A break and close below this lev­el great­ly reduces the odds of retest­ing resis­tance at 0.073 BTC (in red).

The bear­ish stance stays strong as long as the price remains below 0.073 BTC.

Key Sup­port Lev­els: 0.065 & 0.06 BTC
Key Resis­tance Lev­els: 0.073 & 0.08 BTC

eth_price_chart_03102
Source: Trad­ingView

On-chain Analysis

Active Addresses (SMA 14)

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

On-chain data reveals that net­work activ­i­ty is dimin­ish­ing. This might be due to investor uncer­tain­ty. Fur­ther­more, macro­eco­nom­ic data does not bode well for high-risk assets like equi­ties and cryptocurrencies.

Because upward trends are fre­quent­ly con­nect­ed with an increase in the num­ber of active address­es, it doesn’t seem very like­ly for the price to start increas­ing, bar­ring any changes.

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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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