The crypto market is heavily influenced by the events attributed to the Luna ecosystem. Fearing a possible sell-off, investors are depositing their assets in exchanges.
technical analysis
By grizzly
daily chart
ETH is standing at horizontal support (in green), last touched in January. This level intersects with the descending line (in orange), which may have persuaded some participants to buy at this point.
This technical structure has led to price increases. ETH has recently lost key levels, the first of which is $2,500 (in red). The current upward move can technically be considered a bounce until the price reclaims this level.
On the other hand, the last high on the daily time frame is relatively far from the current price. ETH needs to confirm a potential uptrend with a close above $3,000 – only then can a reversal of the trend be considered.
Key Support Levels: $2200 and $1700
Major Resistance Levels: $2500 and $3000
Moving Average:
MA20: $2748
MA50: $3018
MA100: $2912
MA200: $3390
4 hour chart
On the 4-hours time frame, the RSI indicator has entered oversold territory – unprecedented since January. A slight recovery of ETH can be expected in this area. But whether the price can continue to move as strongly as in January is unclear as macroeconomic conditions have been very different since then.
ETH/BTC chart
Unlike most BTC pair charts, the ETH/BTC chart is technically bullish and is trending upwards within an ascending channel. But the recent ascending leg starting from the bottom of the channel is not as strong as the previous one.
Weakness has been observed in the uptrend, and the horizontal support at 0.07 BTC is likely to be retested. Therefore, a bullish insight can be gained as long as the price moves inside this channel and above the horizontal support at 0.064.
on-chain analysis
Supply held on exchange versus supply held by non-exchange addresses
As noted in the technical analysis, the market is under heavy selling pressure, with participants aggressively pooling their assets on exchanges over the past 72 hours.
This behavior is specified in the Supply on Exchange metric. This metric has risen sharply recently, which usually indicates an increase in selling pressure. On the other hand, the supply held by non-exchange addresses has decreased slightly. It remains to be seen whether this increase in supply on the exchanges will lead to further fall in prices.
PrimeXBT Special Offer: Use this link to register and enter code POTATO50 to get up to $7,000 on your deposit.
Disclaimer: The information found on Cryptopotato is that of the cited authors. It does not represent the opinion of Cryptopotato whether to buy, sell or hold any investment. You are advised to do your own research before taking any investment decision. Use the information provided at your own risk. See disclaimer for more details.
Cryptocurrency charts by TradingView.