Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice

Santiment data showed a dramatic increase in transaction volumes for Ethereum over the past two days. In addition, the number of addresses at a loss on the Ethereum network hit a new ATH, which was a particularly bearish development. Do such massive losses mean a relief rally is near, or is there more pain for investors?

In other news, the Merge Ethereum would probably arrive in the coming weeks, but could this positive news save the bulls?

ETH 12 Hour Chart

Source: ETH/USDT on TradingView

The $1800-$1950 (cyan box) area was a demand area last June and July and the price was able to rise from these lows to push new ATHs at $4800. Can the same feat be repeated?

It could be, but a lot needs to happen before such a scenario unfolds again. As things stand, fears of inflation and tanking global stock indices have had a negative effect on the crypto market.

ETH’s market structure appeared to turn bullish for a few days in March, but the price fell back below $3300 and, soon after, also below $3000. This development did not completely break the previous downward trend.

As things stand, the $2280 and $2,500 levels are likely to be strong resistance levels for Ether in the coming weeks. The demand zone just below USD 2000 could see a positive response in the coming days, and a rally towards USD 2200 could see.


Source: ETH/USDT on TradingView

Even as prices formed lower lows, the RSI made higher lows (marked in white). This was a bullish divergence that could trigger a price hike in addition to the demand zone confluence. However, the 33 mark on the RSI has been significant in the past and should climb above that to resemble the late January bounce. In that case, once the RSI climbed out of oversold territory and retested 33, the price started to climb from $2400 to $3200.

The Awesome Oscillator was also well below the zero line to show that bearish momentum was strong, and the OBV has also seen a massive dip in recent days to highlight the sellers’ strength.


A divergence would not be enough to reverse the trend, and this market was not yet ready to establish a bullish trend. Traders with a lower timeframe can look for shorting opportunities, while investors must wait patiently for an opportunity to buy the asset.

This post Ethereum enthusiasts should watch out for these levels in the coming weeks

was published first on https://ambcrypto.com/ethereum-lovers-should-watch-out-for-these-levels-in-the-weeks-to-come/


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