When the merger takes place within a week, ETH remains the market leader and outperforms Bitcoin. However, it is clear from the technical chart that there are significant obstacles standing in the way of the future.
Ethereum is moving within a bearish channel (in blue) on the daily chart. This resistance line has prevented further growth since hitting its highest level. When the price reached the top of the channel in August, it dropped as a result to $1,422.
The Relative Strength Index (RSI 30d) scenario is comparable. The descending line (in white) that has formed over the past 12 months represents resistance.
To achieve the two important objectives – exiting the channel and overcoming the horizontal resistance at $1800 – the bulls must now push the price above this level (in red). This coincides with gaining momentum above the falling line in the RSI.
On the other hand, if the consolidation turns out to be a selling news event, investors should be prepared for further pressure that could bring the price back to $1350 or lower.
Important support levels: $1,420 and $1,350
Key resistance levels: $1800 and $2100
Daily Moving Averages:
ETH/BTC . Chart
The structure against bitcoin is bullish as the pair reached its peak of the year. Buyers can push the price above 0.082 BTC (in green) on their second try.
The current trend is not showing any signs of weakness, and the probability of testing 0.088 BTC (in red) will increase significantly if there is no negative news after the merger.
Important support levels: 0.0.0.082 and 0.073 Bitcoin
Key resistance levels: 0.088 and 0.093 Bitcoin
Drainage Flow (Medium) (SMA 7)
identification: Average amount of coins per transaction sent from the exchange.
A higher value indicates that investors withdraw more coins per transaction. It also means less sales pressure.
The metric indicates that traders are eager to withdraw their coins from the exchange. As the consolidation date approaches, this indicator, which did not rise significantly in the previous month, rises sharply (in green).
This indicates that investors are feeling more optimistic about the upcoming event. Another motive would be eligibility for ETHPOW.
Ethereum Post Volatility Rises Amid Recovering Above $1.6K, So What Next? (Ethereum Price Analysis) First appeared on CryptoPotato.