Ethereum: History doesn’t repeat, but the rhyme is as ETH is poised for…


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

Ethereum’s on-chain metrics noted that it had breached a two-year high for ‘number of lost addresses’ on May 7th. The hype about NFTs is diminishing with reports suggesting a major downturn in NFT sales.

Ethereum miners are reported to have made more mining profits than Bitcoin miners during the month of April. Interest rate hikes and their impact on global stock indices are reflected in the price movements of Bitcoin and Ethereum.

Ethereum – 12 Hour Chart

Source: ETH/USDT on TradingView

Ethereum has been on a downward trend since early December, but the ETH bullish holds some hope after the price rose from a low of $2500 in March to above $3411. In late March, the price broke the trough of the previous downtrend and showed a bullish bias for Ethereum in higher timeframes such as 12 hours and daily.

However, with these developments, the price could not set a higher high. Instead, ETH slipped below the $3171 level and retested resistance. After this bearish retest, ETH fell below several support levels.

At the time of this writing, ETH was once again an area in demand. In January, the price of ether plummeted from $3400 to $2200 just 10 days ago. After testing $2200, demand emerged in February that reverted ETH to $3,000. Could something similar happen one more time?

rationale

History doesn't repeat itself, but there's a rhyme with Ethereum's rise.

Source: ETH/USDT on TradingView

The RSI was below the 50 line, which is the neutral line, and was resurfacing below the 30 line. Momentum has been strongly bearish in recent days, but the 33 level of the RSI may hold the key to the ETH recovery. Similarly, OBV has fallen below levels it has held since the end of January.

If the RSI can move above its 33 line and OBV can cross its resistance overhead, it will be a strong signal for Ether recovery in the coming weeks.

In the meantime, momentum and trends continued to be bearish. DMI showed a strong decline with both ADX (yellow) and -DI staying above 20. The Aroon indicator has mainly been bearish over the past month with the Aroon Down (in blue) remaining high on the indicator.

conclusion

Risk-averse investors will want to see the $2500-$2550 area where the bulls have recovered before buying crypto assets. A more risky trader may try to buy some ETH near what could be the bottom, but this would actually be a risky venture.

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