The compression of Ethereum transactions in the last week; Are we on the verge of defeating the resistance?

فشردگی معاملات اتریوم در یک هفته گذشته؛ آیا در آستانه شکست مقاومت هستیم؟

While the digital currency market is experiencing a long period of stagnation, the difference between the buying and selling price of Ethereum has narrowed in the past week. Prolonging the intensive trading process, which means the approximate equality of supply and demand pressure in trading, can lead to the price crossing one of the current resistance or support levels of Ethereum.

Analysis of Ethereum against the dollar

To Report Cryptopotato, since the price of Ethereum hit its all-time high in September of last year, we have seen two downtrend lines on its daily chart. Over the past few days, Ethereum has been retesting the lower trendline (green line) along with its 200-week moving average (yellow line).

On the downside, if the green support line doesn’t hold and selling pressure increases, we can expect Ethereum price to possibly drop to the $1,000 range below the 200-week moving average. Where the horizontal support line (blue line) and the bearish support line (green line) intersect.

On the other hand, if the Ethereum price reaches above $1,550, it can again try to cross the $1,800 resistance level. In fact, the target is where the bearish resistance line (red line) touches the 200-day moving average (white line). Such a price move will probably end the current bear market.

In the short-term analysis, a price drop below $1,280 or an increase above $1,550 can determine the next direction of the Ethereum trend.

Ethereum Key Support Levels: $1,280 and $1,000
Ethereum Key Resistance Levels: $1,550 and $1,800

Ethereum Daily Moving Average:

  • 20 days: $1,435
  • 50 days: $1,577
  • 100 days: $1,483
  • 200 days: 1972 dollars
The compression of Ethereum trading in the last week, are we on the verge of breaking the resistance?
Ethereum / Tether daily price chart

Ethereum price analysis against Bitcoin

The price of Ethereum/Bitcoin is trying to retrace above its 200-day moving average. Although the price of the pair was briefly above this line, it is now back below it again.

Examining candlestick patterns on the daily chart shows that selling pressure continues in the market. Continued selling pressure could push the price down to the horizontal support area of ​​0.065 BTC (green line).

Moreover, until the price of the Ethereum/Bitcoin pair returns above the resistance of 0.073 Bitcoin, it cannot have a positive outlook on the trend.

Key Ethereum/Bitcoin Support Levels: 0.065 and 0.067 Bitcoin
Ethereum/Bitcoin Key Resistance Levels: 0.073 and 0.8 Bitcoin

The compression of Ethereum trading in the last week, are we on the verge of breaking the resistance?
Ethereum/Bitcoin daily price chart

Analysis of such Ethereum

Funding rates are periodic payments to short and long traders based on the price difference between the perpetual futures market and the spot market.

Funding rates reflect traders’ sentiments in the futures market without maturity and its value is proportional to the number of contracts in the market. Positive funding rates mean long traders are dominant and indicate that they are willing to fund short traders.

According to the data of that cryptocurrency platform, since the financing rate of Ethereum has not changed significantly since September 16 (25 September), traders’ sentiments in the derivatives market have also remained neutral.

So we can conclude that the market probably had a horizontal trend. This happens when supply and demand are roughly equal and usually occurs during a period of price stabilization before the previous trend continues or a new trend begins.

In general, a review of such Ethereum analysis data reveals a decrease in investor activity on the network.

The compression of Ethereum trading in the last week, are we on the verge of breaking the resistance?
Ethereum funding rate chart


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