Ethereum Finds Support at Critical 100-Day Moving Average, Signaling Shift in Market Sentiment
Ethereum’s recent price action has seen it find support around the critical 100-day moving average, indicating a potential shift in market sentiment from bearish to bullish. The cryptocurrency has embarked on a bullish retracement and has now reached a pivotal resistance region, setting the stage for its next move.
Technical Analysis: The Daily Chart
A comprehensive examination of Ethereum’s daily chart reveals a notable change in market sentiment, with the significant 100-day moving average at $2225 providing strong support. This support has led to a rebound in price and a push towards a critical resistance region, which includes the lower boundary of an expanding wedge pattern and the static price zone at $2.6K.
Surpassing this crucial resistance could signal the start of a new phase of bullish movements for Ethereum, leading to increased market volatility. Therefore, the cryptocurrency’s price action near this important range holds paramount importance in determining its future trend.
Technical Analysis: The 4-Hour Chart
Analyzing Ethereum’s 4-hour chart, it is evident that after a sharp decline, the cryptocurrency experienced significant buying pressure, resulting in a reversal. This surge in buying activity pushed the price higher, causing a retracement towards the ascending trendline in an attempt to reclaim it.
Currently, Ethereum is facing a significant resistance region at $2450 and the ascending trendline. This resistance has proven to be a formidable barrier, preventing recent attempts by buyers to breach it. Monitoring the price action around this crucial resistance will likely provide insights into Ethereum’s next direction, with expectations of increased market activity in the short term.
On-chain Analysis: Ethereum’s Exchange Netflow Metric
An examination of Ethereum’s exchange netflow metric, which compares the number of coins entering and exiting exchanges, reveals interesting trends in the market. Positive values indicate an increase in exchange reserves, suggesting potential selling pressure, while negative values suggest a decrease in reserves, indicating ongoing accumulation.
Notably, each sustained uptrend in Ethereum’s price coincided with the netflow metric trending downwards in the negative region. Currently, after a period of consolidation, the metric is exhibiting a decline, signaling potential accumulation in the market. If this trend continues, Ethereum may experience another upward rally in the mid-term.
In conclusion, Ethereum’s recent price action suggests a shift in market sentiment from bearish to bullish, as it finds support at the critical 100-day moving average. The cryptocurrency now faces a pivotal resistance region that will determine its next move. Technical analysis of the daily and 4-hour charts, along with on-chain analysis of the exchange netflow metric, provide insights into Ethereum’s potential trajectory. Traders and investors should closely monitor the price action and key levels to make informed decisions.
Analyst comment
Positive news: Ethereum finding support at the critical 100-day moving average indicates a shift in market sentiment from bearish to bullish. The cryptocurrency’s price action near the pivotal resistance region will determine its next move. Technical analysis and on-chain analysis suggest a potential upward rally in the mid-term. Traders and investors should closely monitor the price action and key levels.
