As mentioned in the analysis above, traders took profit when the price reached the $1,700 resistance. This caused ETH to witness a 16% downward correction. All eyes are on the FOMC meeting that is scheduled for tomorrow. This week’s earnings report from tech giants like Meta, Alphabet, Amazon and Microsoft may also weigh on financial markets.

Technical analysis

By Grizzly

the daily chart

The bears defended the overhead resistance at $1700 (in the red) and halted the recent vertical rally on a daily timeframe. This caused the price to sink below the horizontal support at $1420, which overlapped with the 0.5 Fibonacci level at the time of writing.

The next support is hovering between $1280 and $1320 (in the green). It is crucial that the bulls can sustain the price above this range. If ETH closes below it, the momentum will tilt in favor of the bears and the cryptocurrency could miss a significant opportunity to advance ahead of the Merge event.

On the other hand, if it bounces off the support level, it could be the case that when the 100-day moving average line (blank) reaches the resistance zone, the bulls will try to overcome this hurdle. If it happens, this could open the doors for a rally to $2,000.

Relative Strength Index (RSI) 14d – This index is close to the midpoint. It suggests the balance between supply and demand.

Source: TradingView

Key Support Levels: $1420 and $1280
Key Resistance Levels: $1700 and $2100

Daily moving averages:
MA20: $1347
MA50: $1284
MA100: $1811
MA200: $2372

The ETH/BTC chart

Against Bitcoin, the bullish momentum has stalled for now. The price, which reached the descending line (in yellow) above the 200-day moving average line (in white), returned to the moving average after reaching the yellow resistance.

It seems likely that the recent strong move could be followed by a correction. If that is the case, reaching the support zone in the range of 0.063 to 0.065 BTC is healthy. If this level fails, the ETH/BTC market should prepare for selling pressure by forming a pattern lower.

Key Support Levels: 0.065 and 0.06 BTC
Key resistance levels: 0.07 and 0.078 BTC

Source: TradingView

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Cryptocurrency charts from TradingView.





This post ETH loses 16% in three days, new test or more pain to come? (Ethereum Price Analysis)

was published first on https://cryptopotato.com/eth-loses-16-in-three-days-retest-or-a-more-pain-to-come-ethereum-price-analysis/

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