Home / Business / ETH at a Crossroads When Red Flags Appear

ETH at a Crossroads When Red Flags Appear



  • Ethereum price found resistance at the 50-day Simple Moving Average (SMA) after a rebound from the May 23 low.
  • The February 20th peak is required to sustain further weaknesses that may materialize in the future.
  • The ETH on-chain indicator creates various trends for digital assets. This indicates that the timing is not right for a continuous assembly.

Ethereum price is struggling to regain overwhelming strength during April-May. As the response to last week’s 41.44% drop has been muted until ETH is able to trigger a sustained price pull above the 50-day SMA and the double bottom trigger, the smart contract giants will be dominated by the movement. confusing price

The strength of the Ethereum price is the basis for a broad recovery for the crypto market.

The price of Ethereum surged nearly 60% from a May 1

9 low of $1,900 to a May 20 high of $2,999 before falling to a new May 23 correction low of $1,728, a 70% bounce. It follows a new low to a high on May 26.

The bullish candlestick on the 12-hour ETH chart started its recovery on May 23 after printing a daily oversold on the Relative Strength Index (RSI). It was accompanied by above-average volume. In addition, the price was low. At the end of May 23, May 19, the May 23 undercut created a double bottom pattern for $3,000.

Consecutive sharp rebounds have disappointed the bearish narrative and price compression created that needed to be revealed through a pullback, for example in the previous three days. Once this is done, the Ethereum price may not be constrained to test the double bottom trigger price.

A breakout above the double low of $3000 will reach rapid resistance at 61.8% Fibonacci retracement of the May correction at $3,369. If the ascent continues, the Ethereum price will identify minor resistance at 78.6. % retracement at $3,815 before ETH pushed to all-time high of $4,384

ETH/USD 12 Hours Chart

ETH/USD 12 Hours Chart

Ethereum price may lose hold of support at the twelve-hour SMA 200 at $2,318, risking a fresh retest of February at $2,042. Daily close below impressive levels will reverse the negative trend. And increase the likelihood that ETH will sell down to the strategically significant 200-day SMA of $1,657. Prominent investors and a growing number of institutions should be urged to use the level to begin accumulating scale.

Network metrics raise bullish narrative questions.

According to IntoTheBlock, In/Out of the Money Around Price (IOMAP), there is a group of resistance (of money) above current prices, including 182.94k addresses holding 6.88 million ETH at an average price of $2,527, followed by another cluster that holds 6.88 million ETH at an average price of $2,527. 379.52k addresses with 3.39 million ETH at an average price of $2,582.

In terms of support (in monetary terms), there is incremental protection down to the February peak of $2,042, supporting the case for another pivotal support test.

ETH IOMAP

ETH IOMAP

Santiment’s 30-Day True Market Value (MVRV) indicator shows a negative reading, indicating that Ethereum is being underestimated at its current price level. The 30-period moving average remains in the overvalued range. In the past, the 30-period moving average has dropped to at least fair value. and are often undervalued before the big hike.

before taking the position This is an opportunity to wait for the moving average to reach a level that is fair to a level below its value. Then, given the 30-day MVRV indicator rise above the moving average, ETH still needs weakness and time to generate a similar buy signal.

ETH 30 Days MVRV

ETH 30 Days MVRV

ETH is at a crossroads as IOMAP data imply that Ethereum prices face significant resistance at current levels. The continuation of the pullback is highly probable in the short term. meanwhile The moving average of the MVRV metric is not close to the previous level close to the key rally. Another price drop will bring the moving average of the MVRV indicator to the level corresponding to the previous low. Thus, it generates actionable timing signals for cryptocurrencies.


Source link