ETH Drops Below $1,200 and Recovers Amid Recent Huge Volatility, So What Next? (ETH price analysis)

After a long defense of $1,200, Ethereum temporarily dropped below this level, followed by a quick recovery to $1,343. This price action highlights the importance of demand below the $1200 support level.

Technical Analysis

past grizzly

Daily chart:

At the time of writing, the market has recovered from the volatility caused by the recently released CPI figures for September. Ethereum is back at the 200-week moving average (in white). Given the 61.8% Fibonacci level at $1,210 (in yellow), this level is expected to be crucial to defend.

In a bearish scenario, if ETH drops below $1200 again, the probability of a continuation of the correction increases accordingly. The longer the market struggles with this level, the more buy orders will be executed, weakening the buyers. So a failure at this level could result in a touch of the psychologically important $1,000 level.

On the other hand, the negative sentiment will diminish if the $1,400 horizontal level (marked in red) recovers. In this scenario, ETH may put an end to the persistent bearish structure in the short term.

Important support levels: 1210 dollars and 1000 dollars
Key resistance levels: $1400 and $1550

Source: TradingView

Daily Moving Averages:

MA20: $1,317

MA50: $1,434

MA100: $1510

MA200: $1,838

ETH/BTC Chart:

ETH is showing a high correlation with Bitcoin over the past 23 days. In general, spot price trading below the 200-day moving average (in white) indicates the dominance of the downtrend in the market. Also, the 0.0645 to 0.0663 BTC range (in green) resembles a support zone structure. If the price of ETH falls below that, the market could witness another correction. If this proves to be the case, further support can be expected at around 0.06 BTC.

Important support levels: 0.0645 and 0.06 Bitcoin
Key resistance levels: 0.073 and 0.08 Bitcoin

Source: TradingView

Sentiment Analysis

Buy and Sell Take Ratio (SMA 14)

identification: The ratio of purchase volume divided by volume of sale to recipients in permanent swaps.
Values ​​above 1 indicate that an uptrend is dominant, while values ​​less than 1 indicate that a downtrend is dominant.

According to CryptoQuant data, receivers tend to always fill sell orders because the indicator is less than 1 (in blue). Therefore, this gauge rose above 1 for a short period in early October, but buyers failed to maintain their positive momentum.

Source: CryptoQuant

The structure featured in this chart indicates that the buyers side of the derivatives market has fallen in the overall trend since mid-July (in red), and any short-term recovery is likely to fail until the overall trend reverses.

ETH Drops Below $1,200 And Recovers Amid Recent Huge Volatility, So What Next? (ETH Price Analysis) First appeared on CryptoPotato.

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