This is the level at which ETH must recover to reverse bullishness (Ethereum price analysis)


Ethereum is about to close its 8th consecutive red week. High-risk assets, including stocks and cryptocurrencies, are having a disruptive year in 2022. But where is the next important support for ETH?

technical analysis

technical analysis grizzly

daily chart

Ethereum raised the possibility of an uptrend after overcoming major dynamic resistance in March. However, things turned bearish as ETH fell unexpectedly in early April.

Currently, the price has moved back to the downtrend (shown in blue) and is currently serving as support. This structure meant that the bulls didn’t have enough power to push the price above.

The weakness of this trend can also be seen in the daily candlesticks. Exactly one year ago, on May 19, 2021, the price reached the green demand zone where the daily candles closed with a long bullish wick due to high buying pressure. (downward). As you can see, this area ranges between: $1300 – $1500.

On the other hand, over the medium to long term, if the bull market recovers resistance, the existing bearish momentum will change. $2450.

The directional trend index (purple) moves below the red line, indicating that bearishness is still in full control of the market. This indicator is an insightful tool to track bullishness and gain an edge in the market. For example, when the exponent returns above the white horizontal line, it indicates that the bull is back.

Main levels of support: $1700 & $1500

Main resistance levels: $2200 & $2450

Moving Average:

MA20: $2299

MA50: $2764

MA100: $2812

MA200: $3277

ETH/BTC Chart

According to the BTC pair chart, the price is approaching the horizontal support level of 0.065, which has successfully supported the price twice in 2022.

This level will be tested again soon and if the bulls can defend again, there is a chance it will move upward towards resistance at 0.07. But suppose the bear overwhelms the bull. In this case, there is likely to be a lot of stop loss below 0.065, which will probably accelerate the current bearish trend of ETH against BTC.

Main levels of support: 0.065 BTC and 0.06 BTC

Main resistance levels: 0.07 BTC and 0.072 BTC

On-chain analytics

Number of addresses with a balance of 100 or more

Definition: Number of unique addresses holding at least 100 coins. Only externally owned addresses (EOAs) are counted, not contracts.

On the chart, the number of addresses holding at least 100 ETH (green circle) has increased during the recent market crash. As this indicator began to rise, prices soon followed. However, the accumulation by this indicator was not as significant as in the previous two cases.

If the cumulative increase continues, even a short-term correction could lead to supply shocks and price increases.

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