Ethereum
WMA-200 Critical Level Reclaimed by ETH, Is It Safe? (Ethereum Price Analys)
For almost two weeks the bulls have dominated the crypto markets. Analysts believe that the bullish leg of the crypto markets is a temporary relief rally and will end in a dead-cat bounce, despite rising optimism.
Technical Analysis
Technical Analysis By Grizzly
The Daily Chart
On the daily, $1500 turned out to be significant support and so far successfully holds well. Ethereum has reclaimed the much-discussed 200-week moving average line (in green), but the price is still below the 200-day moving average line (in white).
The following chart shows that key levels appear by adding Fibonacci retracement levels from the all-time high to the 2022 lows at $880.
The first Fibonacci level – 23.6% (in purple) – lies at $1300, whereas the price was able to break above it. The next level is 38.2% (in yellow), which overlaps with the horizontal resistance at $1700.
At the moment, this overhead resistance seems to be a challenge for Ethereum. If the bulls break above this level, ETH will probably retest the daily MA-200 at the 50% Fib level (in light blue).
If ETH price spikes to $1,700, we will likely see traders realize profits and a healthy correction towards $1,500 or even $1,300.
Key Support Levels: $1500 & $1300
Key Resistance Levels: $1700 & $2100
Daily Moving Average Levels:
MA20: $1321
MA50: $1300
MA100: $1843
MA200: $2391
The ETH/BTC Chart
Bitcoin’s price is below the yellow descending line, which acts as resistance. Two previous attempts to break this line resulted in a sharp retrace.
The intersection with the Fibonacci level of 61.8% (in red) has also formed a strong resistance zone. If the price can break above this area, the next resistance is likely the 78.6% level, which lies at 0. 078 BTC.
The bullish structure remains valid so long as the price hovers above 0. 065 BTC level.
Key Support Levels: 0. 065 & 0. 06 BTC
Key Resistance levels: 0. 07 & 0. 078 BTC
On chain Analysis: Exchange Reserve
Definition: The total number of coins held on exchanges.
As the currency reserves continue to increase, it signals higher selling pressure and has an negative correlation with the price.
During the bear market, many investors were persuaded to deposit their coins on exchanges. This increased the selling pressure for the bearish leg.
Following the Ethereum Merge announcement, this metric sharply declined and caused the ETH’s supply on exchanges to drop from 25.2 million on July 6 to 22.8 million. This outflow can be attributed to spot market.
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Cryptocurrency charts by TradingView.
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