The Ethereum price has been falling in recent days after being rejected from a major resistance zone a couple of weeks ago.
Therefore, it would be useful to look at available support levels that could potentially stop the downturn.
Technical analysis
By: Edris
The daily chart:
On the daily chart, the price has broken below the 50-day moving average, which is around the $1,600 mark. This took place after a rejection of the key $1800 level and the upper bound of the large symmetrical triangle pattern.
Currently, the market seems to be looking towards the 200-day moving average, which sits around the $1,400 price level. If this significant moving average is broken, the price is likely to drop towards the $1300 support level in the near term.
Alternatively, if the price bounces off the mentioned 200-day MA, the 50-day MA would now function as a resistance level. This would be followed by the upper limit of the triangle.
The 4 hour chart:
Looking at the 4-hour chart, it is clear that the ETH price has been consolidating between the $1,680 level and the $1,500 area. The $1500 support level will soon be tested, and the near-term future of ETH price action will depend on how the price performs there.
If it holds, a bounce and rally towards the $1680 resistance zone will be more likely.
However, if the price falls below the $1,500 level, the most likely outcome in the coming days would be a further drop towards the $1,350 area. Also, the RSI indicator is currently showing values below 50%, indicating that the bears are in control of the market.
chain analysis
By Shayan
The Active Addresses metric provides insight into the demand side of Ethereum, presenting the total number of unique active addresses, including senders and recipients. The metric has been trending lower during the bear market cycle, indicating declining demand.
However, a downtrend in active directions is typical during market capitulation stages. The metric has recently fallen to a new yearly low, showing that demand is not enough to stop the bear market. Therefore, the market requires more activity to start a healthy bullish cycle.
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