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Technical analysis of Ethereum price; Cows have started their activities in silence?

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At the same time as Bitcoin, the price of ethereum began to rise and advanced by 32% to reach close to $1,680. Since then, ETH has again lost its will to rise and is falling.

According to Mihan Blockchain and quoted by Cointelegraph, the price of Bitcoin started its upward rally from around the price of $17,000 on January 8 (December 18) and was able to grow by nearly 37% in about 2 weeks. Ethereum, as the second largest cryptocurrency in the market, was able to increase its price from around $1,260 to the maximum price of $1,680 and experience a 32% rise.

In this article, we will discuss the technical analysis of Ethereum price from 3 angles.

Dear users of Blockchain Homeland, this article is just a translation of relevant analyzes and is not considered an investment recommendation in any way.

1- Investors preferred Bitcoin to Ethereum

The first thing that can be seen in the recent bullish market rally is the direction of liquidity towards BTC. This issue can be seen in the sharp increase in the dominance of Bitcoin. The figure below shows the Ethereum vs. Bitcoin (ETH/BTC) value chart. As you can see, this chart has taken a bearish trend when the price of Bitcoin reached around $18,000 on January 11 (Dec 21), which means that the value of ETH is decreasing relative to BTC.

ETH/BTC Daily Time Frame Chart Source: TradingView
ETH/BTC Daily Time Frame Chart Source: TradingView

Since then, the value of Ethereum against Bitcoin has decreased by about 13%. For further investigation, we go to the weekly time frame of this chart. As it is clear from the figure below, since the middle of December (Azer), this chart has been decreasing by a downward trend line. This time, when the chart hit this downward trend line, the value of Ethereum again started a downward trend against Bitcoin.

But on the bull side, the 20-55-week EMA in the range of 0.069-0.072BTC has provided good support for Ethereum, followed by the 200-week EMA (blue line) which has supported ETH during the fall of Terra. Bode is the confidence point for investors, which is currently close to 0.055BTC. This would mean that if the 0.069 support is lost, there is a way to go down about 20% on this chart.

ETH/BTC Weekly Time Frame Chart Source: TradingView
ETH/BTC Weekly Time Frame Chart Source: TradingView

Conclusion: The current drop in ETH/BTC to near 0.069 puts Ethereum at risk of losing 20% ​​of its value against Bitcoin.

2- Ethereum price is approaching an important level

Michael van de Poppe considered the recent 10% correction of Ethereum price to be a natural issue. he in a tweet It stated that it expects the price of ETH to stabilize around the current price or eventually $1,400. Currently, the price of ETH is $1,547.

Ethereum price chart 2-hour time frame Source: Twitter
Ethereum price chart 2-hour time frame Source: Twitter

Conclusion: This well-known analyst believes that if this happens and the price stabilizes above $1400, we can consider the specified area as the support area of ​​the new trend and witness a new upward trend for Ethereum.

3- Ethereum monthly candle is decisive

Rekt Capital is the name of another well-known analyst who charts the monthly price of Ethereum has checked. He believes that since July (August), the price of Ethereum has been decreasing with the slope of a downward trend line.

As it is clear in the figure below, the price has not been able to close a monthly candle above this black line in these few months, and the price increase above this level has been in the form of excitement, which shows itself as a wick. Rect Capital believes that the $1,350-$1,500 area is an important support area for Ethereum (orange bar) and on the other side of the downside risk is currently near $1,480.

The very close proximity of this static support and dynamic resistance has caused us to see the clarification of the Ethereum price trend at the end of the month. However, one of these levels must be lost.

Ethereum Price Chart Monthly Time Frame Source: Twitter
Ethereum Price Chart Monthly Time Frame Source: Twitter

Conclusion: If the monthly Ethereum price candle closes above the black line (around $1,480), we can witness the end of the 5-month downward trend of Ether. If $1,350 is lost, the decline will continue.

Where are the support and resistance levels of the Ethereum price?

  • Currently, the level of $1,350 to $1,500 is the main support for Ethereum. Also, the level of 0.069BTC in the chart of the value of Ethereum compared to Bitcoin is considered the last support of Ethereum in this area, and if they are lost, there is a possibility of a 20% fall. On the other hand, closing the monthly candle above $1,480 can end the downward trend.

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