A Move To $2K or an Imminent Correction for ETH? (Ethereum Price Analysis) - Daily Bitcoin news

A Move To $2K or an Imminent Correction for ETH? (Ethereum Price Analysis)


Ethereum started a rally after breaking above $1000 and gained 50% in six days. Largely propelled by the Merge anticipated in September, many are calling for the $2K price target, although there is serious resistance before that.

technical analysis

By Grizzly

The Daily Chart

On a daily time frame, the bulls took another step closer to reclaiming $2,000. ETH was able to recover above $1280 and break out of the sideways trend after a month. However, it’s important to note that the positive divergence in the Momentum indicator also caused the index to break the baseline. So far, whenever it hit the descending line (in yellow) – over the past three occasions – the market had dropped aggressively. Currently, the Momentum has touched the yellow line, and if it can break above it, the bullish sentiment will likely increase further.

The bulls have no choice but to break above the resistance zone at $1,500-1,700 (in red) to develop a sustainable positive trend in the market. If successful, this may even propel ETH to $2,000 and perhaps even confirm a mid-term trend reversal.

Key Support Levels: $1280 & $1000
Key Resistance Levels: $1500 & $1700

img2_eth
Source: Trading View

Daily Moving Averages:
MA20: $1176
MA50: $1335
MA100: $1933
MA200: $2456

The ETH/BTC Chart

ETH performed better than BTC this week and achieved an upside breakout from the monthly consolidation phase. The price has now touched the 200-day moving average line (in white) after breaking the horizontal resistance at 0.065 BTC (in yellow).

The structure is entirely bullish as far as the buyers hold the price above 0.065 BTC. Presently, ETH seems to need more momentum to break above the MA200. Therefore, any correction towards 0.065, which is a chance to gain the required momentum, is healthy.

img1_eth
Source: Trading View

sentiment analysis

Taker Buy Sell Ratio

Definition: The ratio of buying volume divided by selling volume of takers in perpetual swap trades. Values ​​over 1 indicate that the bullish sentiment is dominant. Values ​​under 1 indicate that the bearish sentiment is dominant.

Takers have filled more buy orders after the last market crash. This caused the bullish sentiment to prevail in the derivatives market. This metric has now reached its highest level since the end of 2020. At that time, Ethereum recorded a historic bull run. The derivatives market is very hot, and many positions, mostly short, were liquidated in the last 24 hours.

img3_eth
Source: CryptoQuant
SPECIAL OFFER (Sponsored)

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making investment any decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.





Source link

Leave a Comment