ETH at risk, could retest $1000 soon

                                                            In den letzten Wochen haben wir eine Mini-Rallye gesehen, die an der unteren Grenze des Keils initiiert wurde (siehe unten);  Jedoch, EthereumDer Aufwärtstrend von wurde durch die signifikante Widerstandslinie der gleitenden 50-Tage-Durchschnittslinie gestoppt.  Seit der Ablehnung hat die ETH eine Konsolidierung in einem sehr engen Bereich erlebt.  Eine weitere rückläufige Etappe könnte bald beginnen, es sei denn, der Preis durchbricht die Marke von 1236 $.

Technical Analysis

By Shayan

The daily chart

After a sudden drop below the $1300 static support level, the price has consolidated and formed an ascending wedge pattern (represented by the orange trendlines).

Most recently, after a third touch of the lower border, Ethereum started an uptrend and reached the 50-day moving average line at $1236. However, the 50-day moving average line corresponds to the middle cusp of the descending channel, causing this level to become an important one Resistance will.

Ethereum bulls should expect another uptrend towards the wedge’s upper trendline if the price breaks above this crucial resistance zone. However, given the recent price action and weakening bullish momentum, a rejection from this level is more likely.

The 4 hour chart

From a classic technical perspective, every impulsive price move should be followed by a short-term continuation corrective phase. this also applies to Ethereum’s price action. The chart shows that the price has fallen sharply and has entered a short-term consolidation phase. Meanwhile, an ascending bearish flag pattern has formed.

The price is currently attempting to surpass the middle border of the flag and if a breakout occurs, a rise towards the upper trendline becomes likely. However, as mentioned, the current market structure does not bode well for the bulls. Accordingly, the most likely scenario for Ethereum is a short-term consolidation followed by another crash towards the crucial $1,000 support level.

On-Chain Analysis

The chart below consists of the transaction count metric (30-day EMA) and Ethereum’s price. Typically, market downturns are followed by significantly less activity by market participants, resulting in fewer transactions.

Based on this metric, the market activity level has been in a downtrend since May 2021 and even made a new low. Furthermore, as can be seen from the chart, each impulsive downtrend in the metric has been associated with a sizeable decline in price.

Most recently, the metric has seen a significant dip, indicating a lack of activity. Therefore, the price could soon see another drop to the crucial $1,000 support level.