Ethereum price has recently broken below the 100-day moving average, resulting in a decline towards the important support region around $1.7K.
It is crucial to closely monitor the price action in this important area, as it can provide a clear indication of the next ETH price movement.
Ethereum price technical analysis
By Shayan
the daily chart
Ethereum had been struggling to break out of the 100-day moving average for an extended period, but finally broke below it on June 10, signaling a bearish outlook for the medium term.
However, ETH price has reached the substantial support region at $1.7K where bearish momentum has stalled, leading to stable price action at this level. If the selling pressure persists and causes further decline below this support region, the next target for the bears would be the 200-day moving average at $1,625.
The 4 hour chart
On the 4-hour chart, the price finally dipped below the lower trend line of the channel and reached the main support zone at $1.7K. It has significant psychological value as it has been supporting the price since March 2023.
Considering that the RSI indicator is currently in the oversold section, there is a chance for the price to pull back towards the lower trend line of the channel before initiating the next move. However, if the $1.7K level successfully prevents a further decline and triggers a bullish rally, the next target for Ethereum would be the $2K resistance region.
chain analysis
By Shayan
This chart illustrates the Ethereum exchange reserves metric for the Binance and Coinbase exchanges in relation to the Ethereum price. Recently, the Securities and Exchange Commission (SEC) filed a lawsuit against Binance and Coinbase, creating significant fear within the market.
In response to this development, investors have withdrawn approximately $1.43 billion from the Binance cryptocurrency exchange and its US subsidiary following regulatory actions. Binance experienced net outflows of $1.34 billion worth of crypto tokens on the Ethereum blockchain, while its US affiliate, Binance.US, recorded net outflows of $70.8 million. Coinbase has also witnessed substantial exits due to the uncertainty prevailing among market participants.
Consequently, the ETH Exchange Reserve metric has seen a notable decline for both exchanges, underscoring the fear and uncertainty brought about by the conflict involving the SEC, Binance, and Coinbase.
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cryptocurrency charts by TradingView.
