The market has calmed down a bit in recent days, although it seems clear that the bears are in the driver’s seat. This happened when the bulls managed to defend the $ 1,500 level and are currently trying to recover. Although the negative momentum has subsided, it is still too early to weave the possibility of a subsequent collapse.
Technical analysis
Of Grizzly
The daily chart
The intersection of the 100-day (white) and 50-day (yellow) moving average lines served as support on the daily chart. This level has currently prevented ETH from falling further. The 0.5 Fibonacci retracement level is also around $ 1,500, making it a solid level to keep an eye on.
However, it is also important to keep the macroeconomic overview in mind. The DXY index has started a new bullish trend and is close to breaking the previous high. This is not good news for high-risk assets like stocks and cryptocurrencies. Aside from the upcoming Merge event for Ethereum, which is inherently bullish, the second-largest asset by market cap does not appear to have avoided a correction in the market.
If the bears push the price below $ 1500, it will invalidate the bullish structure. In this case, it will be more likely to reach support in the $ 1,280 -1,350 range and test it again. Such a move can make it difficult for an uptrend to form in the future and the bear market will likely be prolonged.
On the other hand, the bulls have a chance to retest the $ 2,000 if they manage to extend the price above $ 1,800 in the next few days.
Key Support Levels: $ 1500 and $ 1350
Key Resistance Levels: $ 1800 and $ 2000
Daily moving averages:
MA20: $ 1766
MA50: $ 1559
MA100: $ 1547
MA200: $ 2213
The ETH / BTC chart
Against Bitcoin, the price again tests the resistance in the 0.0765-0.79 BTC range (in yellow). This level has played an essential role in the past and has commonly triggered the formation of bull traps.
While it is impossible to predict the future based on past events, considering the recent vertical uptrend, it seems reasonable to be more cautious. Another rally will begin if the price of ETH versus BTC manages to break out of the last high (0.082 BTC).
Key Support Levels: 0.0.073 and 0.065 BTC
Key Resistance Levels: 0.082 and 0.088 BTC
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