Encouraging signs for Ethereum (ETH)! Towards a return of buyers?

The barrel bends but does not break– We tend to highlight the complicated times that the financial markets are going through, and rightly so. However, if we add the Covid crisis, record inflation in the US, which peaks at 8.5%, and the war in Ukraine, we also have the right to find that the markets are still solid. Ethereum, the eternal second project behind King Bitcoin, therefore shows encouraging signs from a technical point of view. Is it possible that the worst is over? Is the altcoin leader able to push the cryptocurrency market? Let’s go and do an analysis on Vitalik Buterin’s assets.

This Ethereum price analysis is offered to you in conjunction with the Coin Trading and its algorithmic trading solution finally accessible to individuals.

Ethereum on a weekly time scale

Price of Ethereum against the dollar (1W)

According to Dow’s theory, Ethereum is in primary bullish trend with dips and rising peaks. At the end of 2021, Ethereum recorded a decline of more than that 50% before finding a support near 2 500 $. While the local top was made on a fragile structure called “V top”, the current bottom was confirmed in “W”. It is a much larger structure solid which shows that buyers are defending the charging zone located between $ 2 400 et 2 900 $.

At the momentum level, the RSI is still below a bearish trend line (Chestnut). The RSI would have to break this trend line in order to find a purchasing force important.

Ethereum, a break and restart every day?

Ethereum has strong daily support.
Ethereum versus the dollar (1D)

It appears that Ethereum has found a support at the level of the psychological round number of $ 3,000. An important area that has acted as support and resistance in the past. From the breakup of $ 3 285Fibonacci extensions give a first target in the charging area of ​​the shorts in the middle 3 800 $ et $ 4 300. The price should close above 3 150 $ to show that resistance to $ 3,000 is now support.

An interesting data comes from the OBV (On Balance Volume). It is a tool that allows you to identify if a movement is okay supported by the volume. This is currently the case as the OBV is above the resistance (brown).

All of these elements suggest that it will likely see the Ethereum price in between 3 800 $ et $ 4 300 in the next weeks. Will it be able to reach a new all-time high? It’s still a bit early to tell, we’ll have to see how buyers and sellers will behave if the price returns to the short charging zone.

Stronger Ethereum que Bitcoin?

A few weeks ago, we identified a bullish channel on the Ethereum / Bitcoin pair. It is still relevant and is still far from the top:

Bullish channel on the Ethereum chart against Bitcoin.
Ethereum vs Bitcoin (2D)

Ethereum is loud against bitcoin. At the beginning of March it rebounded on the support of bullish channel. At the moment, there are no signs of weakness for Ethereum’s price against Bitcoin. This bodes well for the altcoin.

The hypothesis ” buy the item sell the news as for the Merge it seems to be in question with the delay of the long-awaited update. However, it will be advisable to pay attention to the price of Ethereum at the time of The Merge’s arrival. Coinbase had been IPO in April 2021 and Bitcoin had suffered a local top in May. Something to keep in mind for the months to come.

Very low market sentiment with bullish data on the chain!

A few days ago, the Santiment site posted on its Twitter account the market sentiment regarding Ethereum using social network data:

Very bearish market sentiment as Ethereum is above $ 3,000.
Very bearish sentiment on Ethereum source: Santimento.

The Santimento website – as indicated by its name – offers data from social networks. You know, buds are formed in euphoric conditions and the last ones are formed in conditions of general fear. Market sentiment regarding Ethereum has been, according to these data, worse than during the autumn of May 2021.

These data complete the technique. Actors’ sentiments are known to be very important in the markets and this chart still shows it.

The amount of Ethereum on exchanges continues to decline.  There is very little offer available on the bags.
Chart showing the price of Ethereum (green) and the amount of Ethereum on exchanges (pink) source: Santimento.

This chart shows the price of Ethereum and the amount of Ethereum available on exchanges. The offer available on the exchanges is constant slide from March 2020. It is possible that the actors are in the process ofaccumulate ethereum in preparation for The Merge update.

The market is the result of supply and demand. If there is very little supply available, it will take very little demand to make raise prices important.

Recent accumulation of Ethereum for addresses with more than 10,000 of Ethereum.
G.graph showing the number of addresses with more than 10k of Ethereum source: Glassnode

After a strong distribution As of May 2021, wallets with more than 10,000 of Ethereum appear to be waking up. According to this graph, these addresses have accumulated from January 2022 with strong purchases since early March. This kind of strong push on these portfolios has often been followed by a sharp rise in prices.

Finally, Ethereum is demonstrating resilience in the face of recent difficulties due to inflation, Covid and the war in Ukraine. Both from a technical point of view and from an on-chain analysis level, we can see that Ethereum probably still has some under the pedal. These elements suggest that Ethereum could find itself between $ 3,800 and $ 4,300 in the coming weeks and possibly mark a new all-time high. Ethereum remains strong against Bitcoin and this bodes well for altcoins. The only downside is that cryptocurrencies are currently highly correlated with the US market, which will need to show signs of returning buyers for cryptocurrencies to fully express themselves.

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