Ethereum price has reached the crucial level of the 100-day moving average at $1760. The PA in this important support region should be closely monitored, as a failure could lead to a massive cascade.
Technical analysis
By Shayan
the daily chart
After a short-term consolidation phase, the price turned down and reached the 100-day moving average of $1.7K. Although Ethereum’s recent PA has not shown a clear direction, it started a slight uptrend after touching the 100-day moving average, leaving the market uncertain.
However, the price is currently facing two crucial levels, the 100-day moving average at $1748 and the $1.6K support region.
Therefore, it has the potential to initiate a rally by targeting the $2.1K resistance area, but only if the moving average stops Ethereum from falling further.
The 4 hour chart
On the 4-hour time frame, after a short-term consolidation correction leg around the mid-channel boundary, the price continued to plummet towards the $1.7K support region. However, after reaching it, the cryptocurrency experienced a slight rally, starting a slow uptrend rally.
Ultimately, a break below the $1.7K support zone and the lower bound of the ascending channel would lead to a cascade resulting from the liquidation of long positions. Conversely, if supported, the price could potentially target the mid-bound of the channel and even the $2.1K resistance region.
chain analysis
The chart below shows the Exchange Inflow (Top 10) metric along with the Ethereum price. The metric respectfully measures the total amount of coins from the top ten transactions flowing to the exchanges.
High values indicate an increase in investors depositing a large amount at once. This could mean more selling pressure and possible price declines in the future.
Looking at the chart, the 50-day moving average of the Exchange Inflow (Top 10) metric has been trending significantly lower since July 2022, when the market was experiencing a consolidation phase with no clear direction.
However, despite Ethereum’s recent uptrend, the metric has continued to fall, suggesting that selling pressure is not yet at worrying levels. Therefore, its overall outlook remains bullish for the medium term.
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cryptocurrency charts by TradingView.
