The price of Ethereum has been falling for the past few days after being rejected from a significant resistance zone a few weeks ago.
Therefore, it would be useful to analyze the available levels of support that could potentially halt the downturn.
By means of: Edris
The daily chart:
On the daily chart, the price has broken below the 50-day moving average, which is around $1600. This occurred after a rejection of the key level of $1800 and the upper limit of the large symmetrical triangle pattern.
Currently, the market seems to be targeting the 200-day moving average, which is around the $1400 price level. If this significant moving average is broken, the price is likely to drop to the $1300 support level in the near term.
Alternatively, if the price rebounds from the said 200-day МА, the 50-day МА would now function as a resistance level. This would be followed by the higher boundary of the triangle.
The 4-hour chart:
Looking at the 4-hour chart, it is clear that the price of ETH is consolidating between the USD 1680 level and the USD 1500 area. The $1500 support level will be tested soon and the future of ETH’s near-term price action will depend on how the price performs there.
If it holds, a rebound and rally to the $1680 resistance zone will become more likely.
However, if the price breaks below the USD 1500 level, a further decline towards the USD 1350 area would be the most likely outcome in the coming days. Moreover, the RSI indicator is currently showing values below 50%, indicating that the bears are controlling the market.
By means of Shayan
The Active Addresses metric provides a preview of the demand side of Ethereum and displays the total number of unique active addresses, including senders and recipients. The statistic was in a downward trend during the market’s bearish cycle, indicating declining demand.
However, a downtrend in active addresses is typical during the capitulation phases of the market. The statistic has recently dropped to a new annual low, showing that demand is not enough to end the bear market. Therefore, the market needs more activity to start a healthy bullish cycle.
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