The market experienced a sharp decline yesterday with the announcement of US inflation. Ethereum temporarily fell $ 103, but bulls maintained prices above $ 1,000.
Technical analysis
To Grizzly
Daily chart
ETH is traded on the down line (yellow) in the daily time frame. The RSI 14D index was unable to exceed the dynamic resistance (blue) rejected by the baseline, which indicates the weakness of the bulls in the market. Promoting a short-term rally relies heavily on keeping prices above $ 1,000. If this level fails, the chances of another sale are much higher.
However, in a bullish scenario, the buyer’s next step is to break the horizontal resistance for $ 1,300 after the previous two attempts have failed. It could also push the RSI into the bull zone after three months and drive a rally up to $ 1,700.
Main support levels: $ 1000 and $ 880
Major resistance levels: $ 1300 & $ 1500 & $ 1700
Daily moving average:
MA20: $ 1139
MA50: $ 1367
MA100: $ 2006
MA200: $ 2504
ETH / BTC chart
The price is below the horizontal resistance of 0.06 BTC (red). Like the USD pair, ETH failed in the last two attempts to break the first key resistance level. If the price can break the resistance level of 0.06BTC and 0.065BTC against Bitcoin, we can expect a rally. More importantly, bulls need to defend their horizontal support at 0.055-0.05 BTC. The forming structure looks bullish as long as the buyer can maintain the price above the support zone.
On-chain analysis
Exchange supply ratio
Definition: Measures the ratio of tokens in the exchange wallet to total supply.
This indicator has been on the rise in the last two market crashes, supporting the panic of investors depositing assets in exchange for a sale. Last week, the index fell slightly, which led to a temporary drop in sales pressure. However, investor reaction to macroeconomic factors (CPI news) has caused this indicator to skyrocket.
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Cryptocurrency chart by TradingView.
