The bears took control of the crypto market last week and were able to push the ETH price down 12% since reaching its weekly high above $3500.
The DXY index is increasing, and the news from China regarding COVID19 cases has brought back the fear into the market. It is unclear if the market will continue to be bullish if it waits for lower levels, below $3K.
The Daily Chart
Technical analysis by Grizzly
In this analysis, the Trend is examined using the Volume Delta index and the Taker Buy/Sell Ratio Index, which are related to the order books of derivatives exchanges.
On the daily timeframe, ETH is very close to the key support level at $2800 – $3000 (marked green), which has shown an excellent area for a possible trend reversal.
As you can see, the uptrend was accompanied by a rise in buyer takers’ strength (yellow line) and an increase volume delta (yellow rectangular).
This shows that buyers are more aggressive and greedy than sellers when they cause price increases. The downtrend, however, increased the strength and willingness to take on sellers (marked blue). It still doesn’t show any upward signs on the charts. We will have to wait to see if greedy buyers re-enter at the key support.
If ETH drops below this level, the bloodbath will expand. As we have said, it is better to be more careful and avoid making emotional decisions.
Moving average levels
MA20: $3277
MA50: $2941
MA100: $2967
MA200: $3489
The 4-Hour Chart
On the 4-hour timeframe, ETH failed to break the MA100 (marked blue) after two attempts, and the price has dropped to MA200 (marked white). The bulls are currently trying to keep it. The RSI 14-day indicator is also close to the oversold zone.
As mentioned in the analysis above, the most important thing now is to hold support at $2800 – $3000.
On chain analysis: Fund Holding
Fund Holing is the sum of all coins in digital assets such as trusts and ETFs. As indirect investment becomes more popular, the amount could rise.
Indirect investors have been increasing their demand for Ethereum in the last few months due to rising prices. However, now that the price has fallen, investors seem more cautious and demand is declining.
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Cryptocurrency charts by TradingView.