Cryptocurrencies had a tough time yesterday, just like the stock markets. Ethereum lost around 9% of its value and the bears pushed the price towards the $2,800 support.
technical analysis
By grizzly
daily chart
On the daily time frame, Ethereum entered a correction phase after it failed to break above the Fibonacci retracement barrier at 0.618. It is currently forming a bullish pattern with highs and lows forming. However, the main question remains, will the bears consider the $2800 support as a higher low?
If this happens, a retest of the horizontal resistance in the $3500-$3600 range would be slightly more probable. Breaking this and making another higher high could push the price towards $4000. It seems that the momentum of the downtrend has eased somewhat, and sellers are slowly losing power, though still holding the upper hand.
Support Key Level: $2500 and $2300
Resistance Key Level: $3300 and $3600
Moving Average:
MA20: $3030
MA50: $3036
MA100: $2907
MA200: $3470
4 hour chart
On the 4-hour time frame, ETH is trading below a descending line (marked in red) and the Ichimoku Cloud, which is acting as resistance. What is noteworthy is that the downward momentum gradually decreases over this time frame. If ETH can sustain the support at $2800 and form higher levels in this area, one can expect the bulls to retest the resistance at $3000, which is the main hurdle on the lower time frame .
on-chain analysis
exchange supply ratio
The exchange supply ratio is calculated as the exchange reserves divided by the total supply for a specific asset such as bitcoin.
As shown in the chart, this metric continues to trend downward despite the price decline, which we have already seen in the previous uptrend. There is currently no sign of investors willing to deposit their tokens on exchanges.