Ethereum enthusiasts should watch out for these levels in the coming weeks.


disclaimer: The following analysis results are the sole opinions of the authors and should not be construed as investment advice.

Data from Santiment reveals that Ethereum’s trading volume has increased dramatically over the past two days. Moreover, the number of lost addresses on the Ethereum network reached new ATH, which was particularly weak. Does such a massive loss mean a relief rally is imminent, or does it cause more pain for investors?

in other news Ethereum Merge It looked like it would arrive in a few weeks, but could this positive news save the bulls?

ETH- 12 Hour Chart

Source: ETH/USDT on TradingView

The $1800-$1950 area (turquoise box) acted as a demand area last June and July, and prices rose from this low, allowing the new ATH to reach $4800. Can you repeat the same achievement?

It could be, but there’s a lot going on down the bullseye for such a scenario to unfold again. In the current situation, fears of inflation and plunging global stock indices have had a negative impact on the crypto market.

ETH’s market structure was strong for several days in March, but then the price fell again below the $3300 level, and shortly thereafter it fell to the $3000 level. These developments mean that the previous downtrend has not been completely broken.

As it stands, the $2280 and $2500 levels will be strong resistance levels for Ether in the coming weeks. The demand zone just below $2000 may react positively in the next few days and rebound to $2200.

rationale

Ethereum bulls fighting for $2000, watch out for these levels in the coming weeks

Source: ETH/USDT on TradingView

Although the price formed lower lows, the RSI formed higher lows (shown in white). This was a bullish divergence where the price could rebound with a confluence with the demand area. However, the RSI’s 33 mark has been significant in the past and needs to move up to resemble the bounce at the end of January. In this case, when the RSI moved out of its oversold zone and retested the 33, the price started rising from $2400 to $3200.

The Awesome Oscillator also had strong bearish momentum, just below the zero line, while the OBV also declined sharply in recent days, underlining the strength of the seller.

conclusion

Divergence is not enough to reverse the trend and the market is not yet ready to establish a bullish trend. Short-term traders can look for opportunities to sell, but investors must wait patiently for opportunities to buy assets.



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