Ethereum price fell significantly yesterday after several weeks of rising, causing investors to question the validity of the recent positive sentiment and wonder if a bearish continuation will soon follow.
Technical analysis
By: Edris
The daily chart:
On the daily chart, the price has risen steadily, except for the last day, when the market plunged almost 9%. Interestingly, the price has not reached the $2,200 resistance yet, but the bears defended the psychological $2,000 level well.
The RSI indicator also hinted at a possible pullback or reversal earlier, with a clear overbought signal.
Currently, Ethereum could rely on the $1800 level and the 50-day moving average, trending around the same price mark, as potential support. If the uptrend survives and the $2000 and $2200 levels are eventually broken to the upside, a rally towards the important $3000 resistance zone would be very likely.
The 4 hour chart:
Looking at the 4-hour chart, things are not looking much better for ETH, as the price has broken below the large ascending channel. The $1930 minor resistance level is holding the market right now, as price is retesting the broken lower channel boundary.
If the price moves back up inside the channel, a bullish continuation could still be expected.
However, in case the trend line rejects the price, a fall towards at least the $1800 support area would be imminent. Although there are still multiple levels of support, the bulls could hope to push ETH higher and continue with the uptrend.
sentiment analysis
By: Shayan
Ethereum open interest
This graph shows the Exchange Outflow (Mean) metric, which represents the average number of coins withdrawn per transaction from exchanges. The higher values suggest that investors are withdrawing more coins per transaction, indicating a decrease in selling pressure.
The chart indicates a significant increase in the metric at the time when the Ethereum price spiked and reached the critical price zone of $2.1K. This rise implies a shift in sentiment towards optimism as investors accumulate Ethereum during its uptrend.
However, it is important to note that price corrections are always possible, and it is advisable to manage risks and avoid entering the market due to FOMO (fear of missing out).
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