After a phase of consolidation and correction, Ethereum’s price has recently arrived at the crucial support level of the 50-day moving average. However, it is currently going through a tight price range between the 50-day MA and the significant resistance level of $2K.

Technical Analysis

By Shayan

The Daily Chart

Analyzing the daily chart, the price previously formed a higher-high pattern before experiencing a significant decline. The 50-day moving average acted as a support level at $1.8K, leading to substantial volatility in lower timeframes and a significant shadow in the daily chart.

At present, ETH is confined within a narrow dynamic range between the 50-day moving average, which is currently at $1847, and the significant resistance region of $2K.

If the price manages to surpass the resistance of $2K and its prior swing at $2.1K, it could potentially trigger an extended rally. Conversely, if it falls below the 50-day MA, the 100-day moving average at $1.7K will become the primary support level.

The 4-Hour Chart

Analyzing the 4-hour chart, the price was rejected by the ascending channel’s upper threshold, leading to a downward trend toward the channel’s mid-trendline. Despite experiencing enormous volatility after reaching the trendline, the buying pressure in this critical region remains evident.

If the price falls below this essential level, the next stop for Ethereum would be at $1.7K. However, if ETH finds support in this region, the bulls may potentially attempt another run toward the $2.1K mark.

On-chain Analysis

By: Edris

ETH’s price has plunged recently, following the uptrend over the recent months. Looking at the futures market sentiment metrics, it seems that the long liquidation cascade is the culprit.