ETH Still Elusive, Is This the Calm Before the Storm in 2023? (Ethereum price analysis)

It’s been 51 days since Ethereum suffered a major crash, dropping to a new yearly low of $1.1K. Meanwhile, the price is stuck in a price range of $1.1K to $1.3K. Further consolidation within the mentioned range will be the most likely scenario in the coming days.

Technical Analysis

by Cheyenne

daily chart

Ethereum is facing a critical price area consisting of the 50-day moving average as resistance and the middle level of the multi-month channel as support.

The price should soon break out of this narrow range and determine the short-term trend. If ETH breaks above the 50-day moving average at $1225, the bulls should expect a breakout of the $1.3k consolidation range.

However, if the price falls below the center line of the channel, another price collapse could occur, leading to a decline towards the $1.1K stable support (lower level of the consolidation range).

Source: TradingView

4 hour chart

The price finally breached the bearish flag pattern’s ongoing correction to the downside. The cryptocurrency retested the broken level in the form of a pullback and consolidation with very low volatility. In addition, there are three fixed price levels over a 4-hour period; A resistance level is at $1,230 and two support levels are at $1,160 and $1,100.

The price is currently in a consolidation phase between the $1230 resistance and $1160 support. Given the low volatility and the current price action, the price may be stuck in this range for the short-term perspective. However, if Ethereum falls below the $1160 support, the market will enter a new consolidation phase between the $1160 and $1100 levels.

Source: TradingView

On-chain analysis

past Cheyenne

The whales and the major players are the most important and influential group among the market players, as they own a large part of the supply. Thus, tracking their activity can play an important role in predicting market conditions.

The graph contains the average exchange flow (7-day moving average) and the price. A higher value indicates that investors who have deposited a lot at once have been getting more and more recently. This could mean higher selling pressure from larger hands and a possible price drop in the future.

The benchmark index rose impulsively before the big crash in November, suggesting that larger hands may have caused prices to drop by distributing their assets. However, the measured value has calmed down and decreased significantly. This indicates that the market is suffering from a lack of activity. Still, it might be the calm before the storm.

Source: CryptoQuant

Beyond ETH Still Limited Scope, Is This The Calm Before The Storm of 2023? (Ethereum Price Analysis) appeared first on CryptoPotato.

Leave a Reply

Your email address will not be published. Required fields are marked *