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ETH Facing Massive Resistance, Major Correction Coming 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 key resistance area between the $1,700 – $1,800 range.

Technical analysis

Through technical analysis Grizzly

Daily Chart

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

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

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

First and foremost, ETH will break and close above the $1800 mark and target the next significant levels around $1,900-$2,000. There, it turns into a bull-trap – a long liquidation and a return for a retest of the critical level at $1,300.

In the second scenario, ETH breaks $1800 and moves towards the red-marked descending line that cracks above horizontal resistance at $2160 (in white) and overlaps with the 0.618 Fib level (in green). There, ETH is expected to get rejected in its first attempt. In this scenario, since the 200-day moving average is recaptured, we can definitely say that the bulls have regained control of the market.

Key Support Levels: $1500 & $1350

Key resistance levels: $1800 & $2160

Daily Moving Averages:

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

ETH/BTC Chart

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

As the bearish divergence (in red) is evidenced by the RSI indicator, bulls are expected to rest around this area.

From the bottom, it should be noted that the bulls need to protect the horizontal level at 0.07 BTC, while the bears have the potential to dominate the market by forming a lower low. If the 0.07 BTC level is broken, ETH is expected to extend towards the next support at 0.065 BTC (in green).

Key Support Levels: 0.07 & 0.065 BTC

Important Resistance Levels: 0.075 & 0.08 BTC

On-chain analysis

Exchange Netflow: Definition: The difference between coins flowing in and out of an exchange. input – output = netflow .

A positive value indicates that the reserve is increasing.

From a technical perspective, the price has reached solid resistance, so investors are currently looking at Ethereum more skeptically and cautiously. Furthermore, this is the reason why the metric does not change much. If this resistance is broken, Ethereum will be withdrawn from the exchange and the histogram bars will turn red.

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Disclaimer: The information found on CryptoPotato is that of the referenced writer. It does not represent the opinions of CryptoPotato to buy, sell or hold any investments. It is advisable to conduct your own research before making any investment decisions. Use the information provided at your own risk. See disclaimer for more information.

Cryptocurrency Charts by TradingView.

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