Wednesday , February 8 2023
Home / Crypto news / ETH Approaches Critical Resistance but Bearish On-Chain Signal Flashes (Ethereum Price Analysis)

ETH Approaches Critical Resistance but Bearish On-Chain Signal Flashes (Ethereum Price Analysis)

Summary:
Ethereum’s price is currently facing crucial resistance, and the current focus is to surpass it. A successful breakout from this level could potentially result in bullish momentum in the near term. Technical Analysis By Shayan The Daily Chart Ethereum’s price has been forming a descending flag price pattern over the last few months. After recently touching the lower trendline, it has initiated a small rally with extremely low momentum. The price is now consolidating around the middle threshold, which closely aligns near the two intense resistance levels, the 100-day and 50-day moving average lines (standing roughly at ,350). The positive momentum will be fully confirmed if bears push the price above the aforementioned barriers. On the other hand, if the middle boundary

Topics:
CryptoVizArt considers the following as important: , , ,

This could be interesting, too:

CryptoVizArt writes Here’s the First Support for ETH in Case of a Short-Term Correction (Ethereum Price Analysis)

CryptoVizArt writes ETH Battles for .7K But Worrying Signs Appear, What’s Next? (Ethereum Price Analysis)

Duo Nine writes Crypto Price Analysis Feb-3: ETH, XRP, ADA, MATIC, and FTM

Tolu Ajiboye writes Ethereum to Roll Out Staking Withdrawal Testnet Zhejiang on February 1

Ethereum’s price is currently facing crucial resistance, and the current focus is to surpass it. A successful breakout from this level could potentially result in bullish momentum in the near term.

Technical Analysis

By Shayan

The Daily Chart

Ethereum’s price has been forming a descending flag price pattern over the last few months. After recently touching the lower trendline, it has initiated a small rally with extremely low momentum.

The price is now consolidating around the middle threshold, which closely aligns near the two intense resistance levels, the 100-day and 50-day moving average lines (standing roughly at $1,350).

The positive momentum will be fully confirmed if bears push the price above the aforementioned barriers.

On the other hand, if the middle boundary rejects the price, market participants should be prepared for another plummet toward the lower trendline, around $1K, which has served as significant support over the past few months.

eth_price_chart_091201
Source: TradingView

The 4-Hour Chart

Each explosive price move is followed by continuation consolidation phases. The Fibonacci retracement is a valuable indicator to detect these stages and the potential targets. Typically, the 0.5 and 0.618 Fib levels are considered significant resistance in bearish expansion targets.

As the chart demonstrates, an evident imbalance aligns with the 0.5 level of the Fib retracement (standing at $1380) for the recent impulsive bearish price move.  That makes this particular static level a powerful resistance. If the price successfully surpasses this decisive level, bullish momentum will likely return to the market.

Yet, considering the market situation, a rejection from the above-mentioned level followed by a plummet toward the $1K mark might be a more likely outcome.

eth_price_chart_091201
Source: TradingView

Onchain Analysis

The following chart reveals the exchange depositing transactions for Ethereum. The metric demonstrates the total number of deposits counted to the exchanges, with higher values indicating an increased possibility of selling on the spot markets.

The metric marked an explosive jump in Aug 2022, resulting in a significant decline in Ethereum’s price. This was the result of panic selling and asset distribution from market participants.

However, the metric has recently printed two small surges. This increases the possibility of a new cascade in the upcoming days.

eth_exchange_deposits_091201
Source: CryptoQuant

Leave a Reply

Your email address will not be published. Required fields are marked *