Hit or miss …– After a successful deployment of The Merge in Sepoliathere are only a few crucial steps left before the update is complete.Ethereal. However, within weeks, all buyers’ hopes were dashed by a powerful sales force. The month of June was especially complicated for the blockchain of Vitalik Buterin who lost Four. Five %. Those who firmly believe in the project continue to accumulate in this complicated period. Ethereum is currently attempting a trend reversal, but the Bulls Will they finally manage to break the sales force that has been in place since the beginning of April? Let’s analyze the second capitalization of the cryptocurrency market.
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Weekly Ethereum – Back to $900
Ethereum has already lost more than 80% In a few months. The decline could continue if buyers don’t show up quickly:
Ethereum is about to meet its endurance weekly at $1,300. A rejection of this resistance would open the way to a return to $900 support. The weekly trend is frankly bearish and below the downtrend line implemented a few months ago. Now, there is no change in trend: therefore, the price remains very fragile. You’ll have to wait at least one bullish engulfing candle or a false bottom confirmed.
You impulsewhich helps describe the strength of buyers versus the strength of sellers, shows a trend whenever bearish. It will be necessary to break free from the trend line to regain buying strength.
To see that the buyers are present, it would be necessary to exceed a endurance and, for example, draw a range Come in $1,300 et $1,900 For this summer.
Ethereum Daily: Double Resistance at $1,250
Ethereum is in fashion bearish weekly. On a daily basis, the price is trying to change the dynamics by exceeding the resistance at $1,250 :
Ethereum tries for the third time the step of $1,250. The price finds a second resistance with the presence of the first stop (0.382 Fibonacci retracement). If these resistances give way, the objective is a return between $1,500 et $1,700 (shorts recharge area). A breakout of these resistances would show buying presence at these price levels.
The daily momentum is encouraging. The downtrend line dating from the end of March has recently given way. Now you have to keep climbing keeping the support for (green) to 40 of RSI.
Two short-term scenarios for Ethereum
In the very short term, Ethereum has a chance to play. If the bears hold, there is a good chance of a return near the bottom in $880 :
At 1H, Ethereum locks in $1,250. The bears manage to push prices back. Nevertheless, the more a resistor is touched, the higher the chances that it will produce. Therefore, there are two short-term possibilities:
- Bearish : rejection and breakout of the uptrend line. The price could then return to the lows found on June 18.
- Bullish : resistance gives way and buyers are pushing towards the 1.618 – 2 Fibonacci extension between $1,500 et $1,670.
For merchants, this will bewait for a bullish or bearish breakout to take a stand. Given the current trend, the odds are tilted towards a drop and a return to $880. However, even in a downtrend, there are bouncesand this could happen if the bulls manage to break through the resistance.
Ethereum against bitcoin: everything is played now!
Ethereal surpassed the Bitcoin throughout 2021. This has allowed for prosperous health for altcoins. From the beginning of 2022, the king of cryptocurrencies has regained control of the market and ethereum low performance :
If we objectively look at the price of Ethereum against Bitcoin, the trend is bearish and the course reaches endurance. The probabilities are oriented towards a couple fall. This would greatly damage Ethereum, which could then return below the psychological threshold of $1,000. It would also weaken altcoins.
Y another scenario would potentially show up. This is the one shown on the chart. Remember, at the end of 2021, Ethereum draws a “W” in units of time three days before falling. The course did DETOUR before going back to resistance and falling as well. It is quite possible to do the same thing again under resistance.
If the price of Ethereum against Bitcoin reaches overcome resistance in three-day and weekly time units, this would show that the price is at a range from May 2021. This scenario is a optimistic scenario. In fact, the altcoins could take advantage of it to act during the summer, a favorable period for altcoins given the low volumes during this time.
Ethereum: analyze on chain
Ethereum deposits on exchanges
Chain analysis allows knowing the actor behavior. Recently, non-negligible amounts of ethereum have been deposited in exchanges:
while we watched withdrawals of Ethereum for over a year, players have changed their behavior recently. Since the beginning of June, large amounts of Ethereum have been deposited in the exchanges It could be related to capitulation after a fall 75% from the beginning of April.
The passage under $2,000 must have done level damage emotional leading players to massively deposit Ethereum on exchanges. We will have to be careful if this trend continues.
Whales don’t seem to be interested in current prices
the Whales are entities with more than 1,000 BTC and wallet. In the case of Ethereum, it is interesting to watch the whales that have more than 10,000 ETH in wallet :
In 2021, these entities were heavily buying Ethereum, perhaps in view of the transition from Work test it is proof of stake. After the crash of May 2021, the whales decided to distribute scoring the top in Ethereum. More recently, the whales had bet on the upside by buying Ethereum at a price close to $3,000.
From the fall and the step under the threshold of $1,000the whales don’t seem not interested for current prices. This does not seem illogical, since these entities tend to buy when the trend is up and to sell when the curve becomes parabolic. It will surely be necessary for the price to rise again before reviewing the portfolios with more than 10,000 ETH to massively buy back Ethereum.
Ethereum buyers must show up quickly to avoid another drop that would drag altcoins lower. Take on Bitcoin, Ethereum is bearish. It would be necessary to reintegrate the range quickly to avoid further falls. Players seem pessimistic and might even have capitulated if we look at data on deposits and withdrawals on exchanges. Whales aren’t buying Ethereum right now, although prices look attractive.
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