Connect with us
Active Currencies 12880
Market Cap $2,098,235,075,611.90
Bitcoin Share 48.21%
24h Market Cap Change $0.75

Ethereum: The different ways ETH’s price action can play out on the charts

2min Read

Share this article



Disclaimer: The findings of this analysis are the sole opinions of the writer and should not be considered investment advice.

Bitcoin fell below the $39k area in the past few days as fears over inflation and invasion grew. In late January and early February, the short-term market structure flipped bullishly- but a crucial level of resistance was not tested as Ethereum slumped on the charts once more. A recent report highlighted how the perception that the Ethereum network’s powerhouse is the Defi sector could actually be inaccurate.

ETH- 12H

Ethereum couldn't hold on to the $2900 area, can bulls save the next support level?

Source: ETH/USDT on TradingView

The short-term bullish bias in early February did not have enough steam to push the price past the $3200 area. The previous lower high was marked on the chart in orange at $3411 and the bears forced a rejection at the 50% Fibonacci retracement level. These retracement levels were plotted based on ETH’s move from $1706 to $4868.

Therefore, the longer-term market structure remained unbroken, with demand nowhere to be seen in recent days when the price crashed beneath the $2800 mark as well. This could see $2200, $2000, or even the $1700 levels revisited. At which point the 27.2% extension level south might come into the conversation.

However, the USDT dominance (Tether dominance, its measure of market capitalization relative to the whole crypto market) stood at 4.79%- a 5.2% value marked the $29.4k and $1700 bottom for BTC and ETH respectively.


Rationale

Ethereum couldn't hold on to the $2900 area, can bulls save the next support level?

Source: ETH/USDT on TradingView

The RSI fell below neutral 50 once again on the 12-hour timeframe, in response to the selling pressure recently. A divergence was not spotted. The AO also fell below the zero line. Both momentum indicators have had a bearish leaning since early November, with only early February showing bullishness that was quickly expunged.

The OBV has also seen a drop, and a level was marked on the indicator- a drop on the OBV below this level could see selling pressure intensify.

Conclusion

While there was a tiny indication that the bottom could be around the corner, the market structure and momentum remained bearish. It remains to be seen whether the $2362 level can hold as support, while a retest of the $2800-$2900 could be a selling opportunity.


Share

Akashnath is a Chemical Engineering graduate deeply fascinated by Technical Analysis and the crypto markets and enjoys studying price movements and trying to find patterns.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.