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ETH Facing Huge Resistance, Is Major Correction Inbound Before $2K? (Ethereum Price Analysis)

After several attempts, the bulls finally pushed the price above the 100-day moving average line. However, Ethereum is still struggling to break the key resistance area between the $1700-1800 range.

Technical Analysis

Technical Analysis by grizzly

daily chart

Support and resistance levels appeared on the daily chart using the Fibonacci retracement tool, extending from the all-time high to the last low of $880 recorded in June.

As we can see, the bulls quickly broke above the first resistance, which was at the 0.236 Fibonacci level (in blue) around $1300. However, it appears that the 0.382 Fibonacci level (in yellow) has become a direct obstacle for the bulls. Historically, this level played an important role: in the 2021 rally, the price of Ethereum was stuck below it for three weeks.

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

First of all, ETH is breaking and closing above the $1800 mark and targeting the next important levels around $1900-$2000. There, it will turn into a bull trap – long liquidations and a return lower to retest the critical level at $1,300.

In the second scenario, ETH breaks $1800 and breaks through the horizontal resistance at $2160 (in white), and moves towards the red-marked descending line, which overlaps with the 0.618 Fibonacci level (in green). There, ETH is expected to get rejected on its first attempt. In this scenario, given the recovery of the 200-day moving average, we can definitely say that the bulls have regained control of the market.

Main levels of support: 1500 dollars and 1350 dollars

Key resistance levels: $1800 and $2160

Daily Moving Averages:

MA20: $1614
MA50: $1,349
MA100: $1,656
MA200: $2280

ETH/BTC . Chart

Against Bitcoin, as expected, the bulls managed to pull the price towards the descending line resistance (in yellow).

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

From below, it is worth noting that the bulls should defend the horizontal level at 0.07 BTC, while there is a possibility that the bears will dominate the market by forming a lower bottom. If the 0.07 BTC level collapses, ETH is expected to extend towards the next support at 0.065 BTC (in green).

Main levels of support: 0.07 and 0.065 Bitcoin

Key resistance levels: 0.075 and 0.08 Bitcoin

On-series analysis

net exchange: Definition: The difference between currencies flowing in and out of an exchange. Flow – out = net flow.

A positive value indicates an increase in the reserve.

Technically, the price hit a strong resistance, so investors are currently looking at Ethereum with more skepticism and caution. Furthermore, this resulted in the scale not changing much. If this resistance is broken, Ethereum will be withdrawn from the exchange, and the histogram bars will turn red.

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