February 3, 2023

ETH Closes Third Red Week in a Row, is $1,000 Coming? (Ethereum Price Analysis)


Yesterday, Ethereum closed its third consecutive weekly red candle. A candlestick with a long upper wick indicates that increased selling pressure continues. In the last two weeks, the price has been trapped between two significant levels, and breaking out of this zone would likely determine the direction forward.

Technical Analysis

By Grizzly

The Daily Chart

The descending line on the daily chart highlights the creation of lower lows (in yellow). This structure is bearish. However, in order to reach lower levels, selling pressure must first drive the price below the horizontal support of $1,240 (in green).

This action corresponds with a break below the descending line, which could trigger multiple stop losses. Should this happen, $1,000 might be in sight.

Alternatively, the asset could discover strong support at around $1,240, followed by a push above the horizontal resistance at $1,420 (in red).

Key Support Levels: $1240 & $1000
Key Resistance Levels: $1420 & $1550

Daily Moving Averages:
MA20: $1355
MA50: $1527
MA100: $1488
MA200: $1945

eth_price_chart_0310
Source: TradingView

The ETH/BTC Chart

Following the Merge, the market structure against Bitcoin is showing a remarkable weakness. Investors are still hesitant to sell their Bitcoin for Ethereum.

ETH seems more likely to keep declining until the descending line (in yellow) intersects with the horizontal support at 0.065 BTC (in green). A break and close below this level greatly reduces the odds of retesting resistance at 0.073 BTC (in red).

The bearish stance stays strong as long as the price remains below 0.073 BTC.

Key Support Levels: 0.065 & 0.06 BTC
Key Resistance Levels: 0.073 & 0.08 BTC

eth_price_chart_03102
Source: TradingView

On-chain Analysis

Active Addresses (SMA 14)

Definition: The total number of unique active addresses, inclusive of senders and receivers.

On-chain data reveals that network activity is diminishing. This might be due to investor uncertainty. Furthermore, macroeconomic data does not bode well for high-risk assets like equities and cryptocurrencies.

Because upward trends are frequently connected with an increase in the number of active addresses, it doesn’t seem very likely for the price to start increasing, barring any changes.

1
Source: CryptoQuant
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.





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