After several attempts, the bulls finally pushed the price above the 100-day moving average line. However, Ethereum is still struggling to break the major resistance area between $1,700 – $1,800.
Technical Analysis By Grizzly
The Daily Chart
Support and resistance levels were charted on the daily chart using the Fibonacci retracement tool, extending from the all-time high to the last realized low at $880 recorded in June.
As you can see, the bulls quickly broke above the first resistance, which was at the 0.236 Fib level (in blue) around $1300. However, it seems that the 0.382 Fib level (in yellow) has become an immediate obstacle for the bulls. Historically, this level played an important role: In the 2021 rally, ETH price stayed below it for three weeks.
Looking at the next short term, there are two possible scenarios:
First and foremost, ETH breaks and closes above the $1800 mark and targets the next important levels around $1900-$2000. There, it will turn into a bull trap – long sell-outs and pull back for a retest of the critical level at $1,300.
In the second scenario, ETH breaks $1800 and breaks above the horizontal resistance at $2160 (in white) and moves towards the red descending line, which overlaps with the 0.618 Fib level (in green). There, it is expected that ETH will be rejected on its first attempt. In this scenario, since the 200-day moving average is recovering, we can definitely say that the bulls had regained control of the market.
Basic levels of support: $1500 & $1350
Basic resistance levels: $1800 & $2160
Daily Moving Averages:
The ETH/BTC chart
Against Bitcoin, as expected, the bulls were able to pull the price towards the descending line resistance (in yellow).
Since the bearish divergence (in red) was seen by the RSI indicator, it is expected that the bulls will rest around this area.
Underneath, it should be noted that the bulls need to defend the horizontal level at 0.07 BTC, while there is a possibility that the bears will dominate the market by forming a lower low. If the 0.07 BTC level breaks, ETH is expected to extend towards the next support at 0.065 BTC (in green).
Basic levels of support: 0.07 & 0.065 BTC
Basic Resistance Levels: 0.075 & 0.08 BTC
Analysis in the chain
Exchange Netflow: Definition: The difference between currencies flowing in and out of an exchange. Inflow – Outflow = Net flow.
A positive value indicates that the reserve is increasing.
The price has reached a solid resistance from a technical point of view, so investors are currently viewing Ethereum with more skepticism and caution. Furthermore, this resulted in the measurement not changing much. If this resistance is broken, Ethereum will be withdrawn from the exchange and the histogram lines will turn red.
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