After experiencing a medium-term uptrend, Ethereum has now reached a significant resistance region of $1.7K-$2K. A successful breakout of this range can trigger a long-term bullish rally. However, there is also a possibility that the price could face a rejection and fall below the 50-week moving average once again.
By Shayan
the weekly chart
After being supported by the significant support level of $1K, Ethereum started an uptrend that resulted in a breakout of the symmetrical triangle pattern. The price then formed a pullback to the upper trend line of the triangle before continuing to rise above the $1.6K mark and breaking above the 50-week moving average.
The 50-week moving average is a crucial level for the price to hold as it sets an overall bias for the cryptocurrency for the long term. With ETH recovering to this crucial level, your outlook is currently bullish.
However, the price is facing a significant resistance region at $2K. A successful breakout of this price range can trigger a long-term bullish rally.
The 4 hour chart
Ethereum’s recent price action does not provide any clear indication as to its next direction. Currently, the cryptocurrency is consolidating without a specific direction after finding support at the mid-boundary of the ascending channel.
However, the price is facing two critical support and resistance levels: the channel’s mid-boundary at $1,700 acting as support and the channel’s upper trend line at $1,900 acting as resistance.
If the price manages to break above the upper trend line of the channel, the long-term outlook for ETH will be confirmed as bullish. However, if it experiences a sharp decline and falls below the mid-limit, the next support level for ETH will be the $1.5K mark.
By Shayan
The graph shows the average amount of coins per transaction (SMA-14) sent to exchanges along with the price of Ethereum.
When the metric shows high values, it suggests that investors are sending a larger amount of coins in each transaction, which could indicate increased selling pressure. This, in turn, could lead to a possible fall in the price of Ethereum in the future.
The metric has recently increased, which can be attributed to the upward trend in price. This observation suggests that there may be increasing selling pressure among participants, especially in this price range, to recoup their previous bear market losses by taking profits.
However, it is crucial to keep a close eye on the metric in the coming days in case of sudden spikes to avoid further losses.
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cryptocurrency charts by TradingView.
