Ethereum Drops to $1.7K Support as Bears Fight Back

It’s changing into extra evident that bears have completely no intention of retreating. They reacted strongly to the upward motion prior to now three days, and the worth was as soon as once more pushed in the direction of the vital help at $1700.

Technical Analysis

By Grizzly

The Daily Chart

As seen within the each day chart, the horizontal help at $1,700 (in inexperienced) has accompanied the worth since June final year. Now, ETH is again buying and selling at this help as soon as once more. Breaking above it in July 2021 was the place to begin of the upward pattern towards the all-time excessive.

However, the market structure and the macro atmosphere are very completely different now. The bulls haven’t even been ready to type the next excessive but, and the weak spot within the market is clear. For any likelihood at a bullish reversal, two issues should occur.

The first is to break above the descending line (in yellow) after which consolidate above the horizontal resistance at $2200 (in blue). This would end result within the formation of a bullish structure with the next excessive.

On the opposite hand – if bears take management (and this appears extra seemingly ) and push the worth beneath the inexperienced space, then the demand zone between $1300 and $1500 would be the subsequent battlefield.

Key Support Levels: $1700 & $1500
Key Resistance Levels: $2200 & $2400

Moving Averages:
MA20: $1880
MA50: $2312
MA100: $2653
MA200: $3050

The ETH/BTC Chart

Against BTC, the intersection of the descending line (in yellow) and the horizontal help at 0.057 BTC (in blue) has acted as a help degree and prevented additional worth corrections.

The structure of this chart could be very related to the USD pair. Due to the formation of decrease highs and lows, the general image is taken into account bearish till the worth can attain above the horizontal resistance at 0.065 BTC.

Key Support Levels: 0.060 BTC & 0.055 BTC
Key Resistance Levels: 0.065 BTC & 0.070 BTC

Sentiment Analysis

Coinbase Premium Index

Definition: The % distinction between the Coinbase Pro worth (USD pair) and Binance worth(USDT pair).
High premium values might point out US traders’ sturdy shopping for strain in Coinbase.

An unprecedented occasion has occurred on this chart. This index is beneath the baseline (or Zero line) and has reached certainly one of its lowest ranges because the COVID crash. This exhibits that US traders are staying away from investing in ETH in the mean time. This speculation will also be confirmed by the comparatively decrease withdrawal quantity from the Coinbase alternate.