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ETH Price Analysis: Ethereum Drops to $1.7K Support as Bears Fight Back

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It is becoming increasingly clear that the bears have absolutely no intention of retreating. They have reacted strongly to the upside movement over the past three days and the price has once again pushed towards the critical support at $1,700.

Technical analysis

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By Grizzly

Daily chart

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As seen on the daily chart, horizontal support at $1,700 (green) has been accompanying the price since last June. Now ETH is once again trading on this support. A break above it in July 2021 was the starting point of an uptrend to an all-time high.

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However, now the market structure and macroeconomic environment have changed a lot. The bulls haven’t even been able to form a higher high yet, and the weakness in the market is clear. For any chance of a bullish reversal, two things must happen.

The first is to break above the descending line (yellow) and then consolidate above the horizontal resistance at $2,200 (blue). This will result in a bullish structure with a higher high.

On the other hand, if the bears take control (which seems more likely) and push the price below the green zone, then the next battlefield will be the demand zone between $1,300 and $1,500.

Key levels of support: 1700 and 1500 dollars
Key resistance levels: $2200 and $2400

Source: Trading View

Moving averages:

MA20: $1880
MA50: $2312
MA100: $2653
MA200: $3050

ETH/BTC chart

Against BTC, the crossover of the descending line (yellow) and the horizontal support at 0.057 BTC (blue) acted as a support level and prevented further price correction.

The structure of this chart is very similar to the pair with the US dollar. Due to the formation of lower highs and lows, the overall picture is considered bearish until the price breaks the horizontal resistance at 0.065 BTC.

Key levels of support: 0.060 BTC and 0.055 BTC
Key resistance levels: 0.065 BTC and 0.070 BTC

Source: Trading View

Sentiment Analysis

Coinbase premium index

Definition: The percentage difference between the Coinbase Pro price (USDT pair) and the Binance price (USDT pair).
High premium values ​​may indicate strong buying pressure from US investors on Coinbase.

An unprecedented event occurred in this chart. This index is below the baseline (or zero line) and has reached one of the lowest levels since the collapse of COVID. This shows that US investors are currently holding back from investing in ETH. This hypothesis can also be confirmed by the relatively smaller withdrawal volume from the Coinbase exchange.

Source: CryptoQuant
Source: CryptoQuant
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Disclaimer: The information found on Cryptooshalais the property of the cited authors. It does not represent CryptoPotato’s opinion on whether to buy, sell or hold any investment. You are advised to do your own research before making any investment decisions. Use the information provided at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

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