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The crypto market is still shocked by the sharp drop over the week. ETH lost about 45% of its value in ten days. There are no strong buyers in the market yet, and the bears are entirely in control.
Technical Analysis
By Grizzly
The Daily Chart
On the daily timeframe, ETH continues to move downward within a descending channel (in yellow). The last time the bottom of the channel touched was in the fall of May last year. Currently, the price is approaching the bottom of the channel.
In the bearish scenario, if the sellers push the price below, the potential demand zone can be considered in the range of $700-$900(in green). If this area is touched, ETH might enter the accumulation phase after.
In the bullish scenario, the price will likely move towards static resistance at $1,700 (in red). Breaking this resistance depends on the strength of the buyers. Given that the current macroeconomic situation has made investors look at high-risk assets with doubt, this scenario doesn’t seem much likely.
All eyes are on the Federal Reserve’s policies to tame inflation.
Key Support Levels: $1000 & $900
Key Resistance Levels: $1300 & $1500 & $1700
Moving Averages:
MA20: $1624
MA50: $2002
MA100: $2521
MA200: $2907
The ETH/BTC Chart
Against Bitcoin, the intersection of dynamic (in blue) and static (in green) supports at 0.05 BTC has prevented further price drops. The price is currently experiencing high volatility below the first resistance at 0.055 BTC. If the bulls can defend this support, the price of ETH against BTC might increase in the short term. In this case, it can move towards the resistance of 0.055, 0.06, and 0.063 BTC, respectively, which are Fibonacci Retracement levels of 0.236, 0.382, and 0.5.
Key Support Levels: 0.050 BTC & 0.0.045 BTC
Key Resistance Levels: 0.055 BTC & 0.06 BTC
On-chain Analysis
Whale Transaction Count > 1m USD (in purple)
Deposit Transactions (MA30) (in yellow)
Exchange Inflow (MA30) ( in blue)
The on-chain data chart shows that the number of deposit transactions to the exchange and exchange inflow is still high. Although, in recent days its amount has decreased slightly. The number of whale transactions above $1 million is also dropping. It is not yet possible to confirm whether the selling pressure has been significantly adsorbed or not.
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Cryptocurrency charts by TradingView.