ETH Rejected at Critical Resistance. Where is the Next Support below $3K? (Ethereum Price Analysis]

After another attempt, Ethereum still could not overcome the key resistance at $3200, and the bears quickly took control of the market.

This is a reflection of the general sentiment as the DXY Index continues to rise and high-risk assets like Bitcoin and US stocks indices are falling. As a safe-haven asset, Gold lost 3.5% recently.

Technical Analysis

Technical Analysis By Grizzly

The Daily Chart

On the daily timeframe, following the $3200 rejection, the Seller Takers still have the upper hand in the market, as they were able to impose more than 8% correction on ETH.

Below are the recent uptrends within the ascending channel. They are marked yellow. The market has not seen a significant increase in Volume Delta and Buyer Takers as a result of the price rise.

If sellers continue to control the market, ETH can be expected to drop to retest the channel’s bottom line at $2800. On the bullish side, the main challenge is breaking the resistance at $3200, which ETH does not seem to have enough power to do as of now.

Moving Averages:

MA20: $3117

MA50: $3010

MA100: $2923

MA200: $3483

The 4-Hour Chart

In the 4-hour timeframe, ETH is moving south in a descending channel. It has touched the midline which acts as a support. The primary resistance in this timeframe is the MA200 line, which lies at $3177, and it intersects with the critical resistance mentioned above.

Based on the review of technical data, the main challenge is overcoming the resistance at $3200, and the bulls must first overcome this level with strength (volume). Ethereum is moving upwards in the daily ascending channel. Therefore, there cannot be any bearish insight unless this channel is broken down. This would invalidate the previous analysis and lower levels will likely be tested.

OnChain: Percentage Of Stablecoin Total Supply by Whales with More Than $5M

When this metric rises, the whales will be less likely to hold stablecoins. They will probably convert them into BTC or Altcoins like ETH.

A low value means that the whales make profits and would prefer to keep stablecoins in bearish market conditions. As you can see, the whales accumulate and their total supply is decreasing.