The price of Ethereum has been in a gradual decline since mid-March, and there are still no signs of a definitive recovery.
However, today's price action is very important as it could eventually restore bullish momentum to the market.
technical analysis
Provided by:TradingRage
daily chart
On the daily time frame, Ethereum price is trending down within a large descending channel and has not yet broken out on either side.
Meanwhile, the cryptocurrency is currently testing the midpoint of the range and the key $3,000 level. With the 200-day moving average sitting near the $2,800 support zone, we think the market will likely move higher toward the $3,600 resistance zone in the coming weeks.
4 hour chart
The 4-hour chart paints a clearer picture. Ethereum price has been rising rapidly since yesterday, but is currently holding at the midline of the channel and the $3,000 resistance level.
Meanwhile, the RSI is currently above 50%, indicating momentum in the buyers' favor. Therefore, a breakout above the channel midline could lead to a rapid rise towards the $3,600 resistance area.
sentiment analysis
Provided by:TradingRage
exchange reserves
Ethereum price has been on a downward trajectory since its rejection from the $4,000 level. On the other hand, analyzing market demand and supply dynamics can provide important information.
This chart shows the Exchange Reserve metric and Ethereum's 30-day overtransfer amount. An increase in value is usually associated with increased selling pressure as it indicates deposits are being exchanged by holders who wish to sell their coins.
As the graph shows, indicators of foreign exchange reserves have generally declined in recent months. However, this indicator has recently moved above the moving average, indicating that abnormal selling has previously materialized during price declines or reversals. Therefore, investors should hope that supply will meet sufficient demand, otherwise the situation could deteriorate quickly.
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Cryptocurrency charts by TradingView.
