ETH Rejected From $2K, Here’s the Critical Support to Hold (Ethereum Price Analysis)

Ethereum has experienced a 6.6% correction from the daily high it recorded at $2012. The critical support level lies in the price range between $1700 and $1800, and it is very important for ETH to keep above it to prevent any further declines.

Technical Analysis

By Grizzly

The Daily Chart

Ethereum is moving along inside a rising wedge (in yellow), which is technically a bearish pattern. Simultaneously, the trading volume on Binance is decreasing. This suggests that buyers are gradually reducing.

Suppose that the bulls are able to defend the critical support in the $1,700-$1,800 range (in green) and not allow the pair to break below it. In this case, it is expected that the upward trend will continue with the target of $2200 after completing a brief pullback. Conversely, if the price slips below the mentioned support, it gives bears an opportunity to target $1350-1280 (in light blue).

For now, it is better to have patience and see what Ethereum does after hitting this level.

Key Support Levels: $1800 & $1500
Key Resistance Levels: $2000 & $2200

Daily Moving Averages:
MA20: $1753
MA50: $1464
MA100: $1585
MA200: $2253

Source: TradingView

The ETH/BTC Chart

Ethereum’s super bullish trend against Bitcoin stalled when it hit horizontal resistance at 0.082 BTC (in red). Touching this level in the past has been the starting point for deep corrections. But for now, the pair seems likely to retest the upper resistance until the price aims above the support range at 0.072-0.075 BTC (in yellow). As soon as this support cracks, the trend reversal would be confirmed. In this case, the price can decrease down to 0.065 BTC.

Key Support Levels: 0.0.75 & 0.065 BTC

Key Resistance Levels: 0.082 & 0.088 BTC

Source: TradingView

On-chain Analysis

Exchange Netflow

Definition: The difference between coins flowing into and out of the exchange. (Inflow – Outflow = Netflow)

A positive value indicates the reserve is increasing.

As shown below, ETH’s upward trend has been accompanied by a decrease in exchange reserve. Red histogram bars indicate that the outflow is greater than the inflow. In the last four days, the histogram bars have turned green. This indicates that investors deposited their coins in exchange for a possible selloff. It is beneficial to know that this inflow is related to the spot market.

Source: CryptoQuant

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