Ethereum price has been rejected from a significant resistance level following the turmoil surrounding Silvergate. However, there are still multiple levels of support available to hold the price down for now.
Technical analysis
By: Edris
the daily chart
On the daily time frame, the price has been struggling to break above the $1800 level. The upper bound of the large symmetrical triangle pattern and a bearish rejection have led to the breakout of the 50-day moving average located around the $1800 mark. $1600.
The 200-day moving average, located around $1,400, looks like the next likely support zone, followed by $1,300, which could be tested if a deeper pullback occurs.
The 4 hour chart
On the 4-hour chart, the price has been impulsively rejected from the $1650 level and is likely to test the $1500 support level soon. If this support level holds, ETH could once again target the $1650 level and the upper bound of the triangle pattern.
On the other hand, a break of the $1500 level would likely result in a deeper drop towards the $1350 area, as there is no significant support level between these 2 levels. The RSI indicator is also showing values below 50%, which points to bearish dominance.
However, the RSI is approaching the oversold zone, which could lead to a consolidation or bullish pullback in the near term.
chain analysis
By Shayan
The chart below shows the estimated leverage ratio metric alongside the ETH price. The metric measures the average amount of leverage used by futures market participants. Generally, rising values indicate that more investors are taking high leverage risk in the derivatives market.
The estimated leverage ratio has risen slightly over the past few weeks, showing that the futures market could be overheating due to the recent bullish price moves.
The metric has yet to reach worrying levels, but if it continues to rise, participants should be wary due to the possibility of a short or perhaps even a long event. In this case, a sudden impulsive movement in the Ethereum price will occur.
In conclusion, the behavior of the metric should be monitored in the coming weeks to avoid further losses.
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cryptocurrency charts by TradingView.
