ETH Facing Huge Resistance, Is A Major Correction Coming In Before $2K? (Ethereum price analysis)

After several attempts, the bulls finally pushed the price above the 100-day moving average. However, Ethereum is still struggling to move above the key resistance area between the $1,700 – $1,800 range.

Technical analysis

Technical analysis by grizzly bear

The daily chart

Support and resistance levels have appeared on the chart in the daily time frame using the Fibonacci retracement tool, stretching from the all-time high to the last realized bottom at $880 recorded in June.

As can be seen, the bulls quickly broke above the first resistance, which was at the 0.236 Fib level (in blue) around $1300. Still, it seems that the 0.382 Fib level (in yellow) has become a direct obstacle for the bulls. Historically, this level has played an important role: in the 2021 rally, the ETH price remained below it for three weeks.

Looking at the next short term, there are two possible scenarios:

First and foremost, ETH breaks and closes above USD 1,800 and is targeting the next significant levels around USD 1,900-$2,000. There it will turn into a bull trap – long liquidations and back down for a retest of the critical level at $1,300.

In the second scenario, ETH breaks $1800 and bursts above the horizontal resistance at $2160 (in white), moving towards the red marked bearish line, which overlaps with the 0.618 Fib level (in green). There, ETH is expected to get a rejection on the first try. In this scenario, as the 200-day moving average has recovered, we can safely say that the bulls regained control of the market.

Main support levels: $1500 & $1350

Key Resistance Levels: $1800 & $2160

Daily Moving Averages:

MA20: $1614
MA50: $1349
MA100: $1656
MA200: $2280

The ETH/BTC Chart

Against Bitcoin, as expected, the bulls were able to pull the price towards the bearish line resistance (in yellow).

Since the bearish divergence (in red) has been observed by the RSI indicator, the bulls are expected to rest around this area.

From below, it should be noted that the bulls have to defend the horizontal level at 0.07 BTC, while there is the potential for the bears to dominate the market by forming a lower low. If the 0.07 BTC level falls, ETH is expected to expand to the next support at 0.065 BTC (in green).

Main support levels: 0.07 & 0.065 BTC

Main resistance levels: 0.075 & 0.08 BTC

Analysis on the chain

Exchange Netflow: Definition: The difference between coins flowing in and out of the exchange. Inflow – Outflow = Mains current.

A positive value indicates that the reserve is increasing.

The price has hit a solid resistance from a technical standpoint, so investors are currently looking at Ethereum with more skepticism and caution. In addition, this has meant that the statistic does not change much. If this resistance is broken, Ethereum will be delisted and the histogram bars will turn red.


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