ETH Rejected At Critical Resistance, Where is the Next Support Below $3K? (Ethereum price analysis)

Ethereum was unable to overcome the key resistance of $3200 after another attempt. The bears quickly seized control of the market.

This is a sign of the overall sentiment. The DXY index continues rising, while high-risk assets such US stocks and Bitcoin are declining. Gold, which is a safe-haven investment, has seen its value drop by 3.5% in recent months.

Technical Analysis

Technical Analysis Grizzly

The Daily Chart

On the daily timeframe, following the $3200 rejection, the Seller Takers still have the upper hand in the market, as they were able to impose more than 8% correction on ETH.

Below are the recent uptrends within the ascending channels (marked yellow). The price increases were accompanied with an increase in Buyer Takers strength and Volume Delta. This is something currently not being seen on the market.

If sellers continue to control the market, ETH can be expected to drop to retest the channel’s bottom line at $2800. The main challenge for bulls is breaking through the resistance at $3200. ETH doesn’t seem to have the power to do this as of right now.

Moving Averages

MA20: $3117

MA50: $3010

MA100: $2923

MA200: $3483

 

The 4-Hour Chart

ETH moved south in a descending channel during the 4-hour period and touched the midline which acts as a support. The MA200 line is at $3177 and intersects with critical resistance.

The main challenge lies in overcoming resistance at $3200. This must be overcome by bulls with strength (volume), according to technical data. Ethereum moves higher in the daily ascending channels, so it is impossible to see any bearish insights until the channel is broken. This would invalidate the previous analysis and lower levels will likely be tested.

On-Chain, Percentage of Stablecoin Total Supply by whales with more than $5M

The whales become less inclined to hold stablecoins when this metric rises. In such cases, they will likely convert them to BTC and Altcoins, such as ETH.

Low values are indicative that whales can make profits. They prefer to hold stablecoins during bearish market conditions. As seen below – the whales are accumulating, and their total supply decreases.

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