After six weeks in the red, fear dominates the crypto market. Many large caps have lost their long-term support, and the ETH is one of them, having reached its lowest level since February 24, the day of the invasion.
This is what awaits you in this article
Technical Analysis of Grizzly
The daily chart
The delta volume of both Binance Futures and FTX Perpertuals evaluates the behavior of buyers and sellers in the market.
When green histograms are observed, it is interpreted as buyers being in control and buying aggressively and we can expect the price to rise. Of course, the length and order of the histograms must also be taken into account.
In the previous two bullish uptrends, the buyer-takers were seen to have a higher hand at the support levels, pushing the price higher. In the last month, the buyer-takers didn’t have much power, but we have to wait and see if they will take control of the market in the coming days or if the sellers will continue to dominate it.
Key support levels: $2300 & $2150
Important resistance levels: $2500 & $2700
The 4 hour chart
On the 4-hour timeframe, ETH is lying near the support amidst the descending line marked in green. The price might face another downtrend towards $2300 in the short term and enter the oversold zone. However, you should keep in mind that the trend reversal will be confirmed if the price can at least make a higher high and higher low.
Losing Daily On-Chain Transaction Volume: This metric gives the total amount of coins across all transactions on the network that moved into loss.
When this metric moves up, it indicates investors are capitulating. This is usually seen as an opportunity to shop.
However, the capitulation phase like in past bear markets has not yet arrived. Also, the volume of liquidated long positions has not yet reached previous levels, so there is no certainty that the necessary liquidity has been absorbed to start a possible uptrend.
Source: Crypto News Deutsch