March 24, 2023

Like traditional markets, crypto markets reacted badly to Powell’s speech yesterday. Market sentiment was bearish following the Fed’s announcement to continue hawkish policy. Yesterday’s sell-off caused Ethereum to drop more than 12% in 24 hours. Is more pain coming?

technical analysis

go through: Grizzly

daily chart

Ethereum price fell sharply against the US dollar and Bitcoin yesterday. The bearish uptrend from Aug. 21 led to a sharp rejection after hitting the $2,000 mark.

ETH then quickly lost the important support range of $1,700 to $1,800, and at the time of writing these lines – was trading below $1,500.

As the chart shows, the price experienced a severe decline after breaking below two distinct bear flags. At the same time, the price broke below the 100-day moving average (white). Currently, the 100-day chart average is $1,531. The bears are now trying to close the daily candle below it.

With a lower low forming, the support area of ​​$1,280-1,350 (green) is likely to be reached. Hope will return to the market only if the bulls can reclaim the $1,700-$1,800 range.

Key Support Levels: $1500 and $1350

Key Resistance Levels: $1800 and $2000

Daily moving average:

MA20: $1750
MA50: $1592
MA100: $1531
MA200: $2184


Against Bitcoin, the price bounced off a horizontal support range of 0.072-0.073 BTC (marked in green), failing to form a higher high (marked in yellow). This is a warning sign that could lead to the formation of a potential bearish structure. This option will only work if ETH falls below the green line.

The 50-day moving average (white) is also nearby and could be retested. The next key support is near 0.065 BTC. On the other hand, it is unlikely now that a bullish scenario for ETH/BTC is possible if the price breaks the previous high of 0.08 BTC.

Key Support Levels: 0.0.073 & 0.065 Bitcoin

Key Resistance Levels: 0.083 & 0.088 Bitcoin

sentiment analysis

Taker Buy-Sell Ratio (SMA 14)

definition: The ratio of buy volume divided by taker sell volume in perpetual swaps.

A value greater than 1 indicates that bullish sentiment is dominant. A value below 1 indicates that bearish sentiment is dominant.

The index, which measures derivatives market sentiment, has been below 1 since early August. This indicates that more sell orders are filled by the taker. It has increased slightly recently, but not enough to be significant.

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