ETH Corrects 6% Overnight After Failing to Overcome $1.8K (Ethereum Price Analysis)

Ethereum has spent the last four weeks on a bullish footing as the buyers managed to shoot the price up from around $1,000. The bears were waiting around the overhead resistance at $1,800. They have prevented further price increases twice thus far, so is it time for the bulls to rest?

Technical Analysis

By: Grizzly

The Daily Chart

Yesterday, the bulls managed to briefly push the price above $1,800, but that’s where bears interfered. As a result, the cryptocurrency has fallen 6% as of this writing. The Moving Average Convergence Divergence (MACD) has shown negative divergence for some time, which is not good. Resuming the uptrend requires a break and close above the resistance zone at $1700-$1800 (in red).

On the other hand, if the bulls cannot clear this hurdle the bearish momentum may prompt the cryptocurrency to reach $1,500. A break below this level suggests that the bullish momentum has weakened. In this scenario, retesting the support zone in the range of $1,280-1,350 (in green) will look more likely.

Key Support Levels: $1500 & $1350
Key Resistance Levels: $1800 & $2160

Daily Moving Averages:
MA20: $1635
MA50: $1374
MA100: $1636
MA200: $2269

Source: TradingView

The ETH/BTC Chart

The bullish momentum against BTC seems to be waning. The divergence in the MACD indicator is clear. Bulls probably need to rest after breaking several firm resistances and reaching the descending line resistance (in yellow). The positive structure would remain strong as long as the bulls hold prices above 0.065 BTC (in green). If the horizontal support at 0.07 BTC (in white) cracks, the downtrend will likely be triggered. A close below 0.065 BTC signals the formation of a bearish structure.

Key Support Levels: 0.07 & 0.065 BTC
Key Resistance Levels: 0.075 & 0.08 BTC

Source: TradingView

On-chain Analysis

Taker Buy Sell Ratio
The ratio of buy volume divided by sell volume of takers in perpetual swap trades.

Values over 1 indicate bullish sentiment is dominant.
Values under 1 indicate bearish sentiment is dominant.

According to CryptoQuant data, takers fill more sell orders in the derivatives market. This makes the bearish sentiment prevail for the time being. This metric ideally must stay below 1 (light blue line), so it’s important to remain very cautious.

Source: CryptoQuant

The post ETH Corrects 6% Overnight After Failing to Overcome $1.8K (Ethereum Price Analysis) appeared first on CryptoPotato.

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