April 1, 2023

Disclaimer: The results of the following analysis are the author’s sole opinion and should not be considered investment advice.

After a brief month-long uptrend until mid-August, ethereum [ETH] After the breakdown of the rising wedge, the bears are back in the game. This reversal helped sellers drag ETH below the daily 20/50/200 EMA.

King alt now stands in an important area. A convincing break below the $1,513 level would drive further losses ahead of near-term recovery opportunities. At press time, alt is trading at $1,503.2, down 9.43% over the past 24 hours.

ETH daily chart

Source: TradingView, ETH/USD

Buying pressure from ETH’s mid-June low forced it to break above the 20 EMA (red) and 50 EMA (cyan). The altcoin has seen a return on investment (ROI) of over 73% from its July 13 lows and reached near the 200 EMA (green), indicating that buying advantage is increasing.

But resistance at $1,993 triggered a rising wedge breakdown. Recent losses have pulled ETH below its immediate supply zone (green, rectangle).

If there is a bearish crossover at the 20/50 EMA, the bears will be looking to maintain their long-term advantage on the charts.Hence, a convincing close below the $1,500 area could help ETH retest $1,440 level. A break below this support could trigger price discovery.any rebound Support from immediate may hint at near-term recovery $1,603 level.


Source: TradingView, ETH/USD

This Relative Strength Index (RSI) A sharp break below the midline reflects strong selling advantage. Traders/investors should watch for a recovery towards the 50 level support to identify bearish invalidation opportunities.

This Accumulate/Distribute On the other hand, the indicator marks a higher trough and diverges from a bullish price. A sustained recovery could signal a possible accumulation phase, easing recent selling pressure.

despite this, Moving Average Convergence Divergence (MACD) The line depicts a strong sell advantage, and its line is on the verge of breaking below the zero mark.

in conclusion

Given the breakdown of the rising wedge below the south-facing 20/50 EMA, the bears are aiming to take control of the near-term trend. Potential buy/sell targets would be the same as above.

Finally, investors/traders need to keep an eye on Bitcoin’s movements. This is because ETH has an 82% 30-day correlation with King Coin.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *