Ethereum
Ethereum crashes 9% in one day, where’s the next support? (ETH Price Analysis)
Negative sentiment has dominated the market this week as Ethereum failed to reclaim the $2000 level. The bears want to trap bulls by pulling the price below the breakout level.
Technical Analysis
By: Grizzly
The Daily Chart
The bears stepped in to induce a 16% decline over the past six days after Ethereum was rejected from $2,000. The rising wedge pattern in yellow could indicate that the bearish trend may be extended. The bulls must prevent a decline below the critical level in the $1,700-$1,800 range.
The Relative Strength Index, (RSI), indicator also fell below the baseline. This suggests that the bears are gaining momentum.
If the pair continues to decline, the closest support will be found in the range of $1520-$1570 (in green). This support is the result of the intersaction between the 50-day moving average line(in orange) and the 100-day (in white) moving average line. If this level cracks, the possibility of forming a bear structure would be strengthened, thereby sending Ethereum to test $1,280. The bulls have no choice but to hold the price above $1,700 to resume the bullish trend.
Key Support Levels: $1700 & $1500
Key Resistance Levels: $2000 & $2200
Daily Moving Averages:
MA20: $1777
MA50: $1519
MA100: $156
MA200: $2237
The ETH/BTC Chart
Against Bitcoin, it is slightly different. The situation is slightly different for Bitcoin, even though the bulls failed push the price higher than the horizontal resistance of 0. 082 BTC (in red), they still control the market. Breaking below the support zone of 0. 073-0.075 BTC (in green) would signal the start of a bearish rally with a target of approximately 0. 065 BTC (in white).
Key Support Levels: 0.0. 75 & 0. 065 BTC
Key Resistance levels: 0. 082 & 0. 088 BTC
Sentiment Analysis
Taker Buy Sell Ratio (SMA14)
Definition: The ratio of buying volume divided by selling volume of takers in perpetual swap trades.
Values greater than 1 indicate that bullish sentiment prevails.
If the value is below 1, it indicates that bearish sentiment prevails.
As we have previously discussed, some investors prefer to book their profits once the price reaches the technical resistance levels. The bearish sentiment is also evident in that more derivative market takers have filled sell orders. The metric falls below line 1 (in green). The chances of a significant recovery are slim as long as the metric doesn’t return above it.
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Cryptocurrency charts by TradingView.
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