After a period of correction, the Ethereum price found support in a significant region comprising the 200-day moving average and the lower trend line of the flag pattern, located at $1.6K. As a result, the price started a slight bullish rally.
By Shayan
the daily chart
After an extended bearish phase, the price reached a notable support region encompassing the 200-day moving average and the lower bound of the flag pattern. This zone serves as solid support as it also lines up with the $1.6K static support level, indicating substantial buying pressure.
Consequently, this buying pressure led to the formation of a bullish rally. However, the positive momentum weakened as it reached the previous swing low on the daily chart, causing a decrease in volatility and the development of very small candles.
However, if the bullish rally continues, Ethereum’s next target will be the 100-day moving average and the upper trendline of the flag pattern, positioned at $1834.
The 4 hour chart
On the 4-hour chart, after breaking below the lower trend line of the extended ascending channel, the selling pressure remained high, causing the price to continue to plummet.
However, after a few days of red candles, ETH reached the crucial 61.8% Fibonacci level, which represents the initial target for correction stages during the bullish rally that originated at $1,368 and persisted until finding resistance. significant at $2,100.
However, it is worth noting that the recent bounce could be a pullback towards the broken level. Ultimately, Ethereum’s next move will be determined by future price action.
chain analysis
By Shayan
The following chart illustrates the relationship between Ethereum’s Exchange Netflow metric and its price. After finding resistance at the $2.1K level, Ethereum price entered a prolonged consolidation correction phase, leading to a 24% correction. As shown in the chart, the Netflow metric exhibited a downward trend during this market condition, eventually plummeting below 0.
However, the recent lawsuit involving Binance, Coinbase, and the SEC acted as a catalyst for the bearish trend in the market, prompting participants to withdraw their assets from these exchanges. Consequently, the Netflow metric experienced a further impulsive drop, indicating the prevailing fear in the market.
However, it is important to note that a robust and sustainable rally to the upside should not be anticipated until fear and uncertainty are lifted from the market and sufficient demand returns.
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cryptocurrency charts by TradingView.
