Looking for the next target for Ethereum (ETH) as the drop in price continues? Our detailed Ethereum price analysis provides insights into potential future levels to watch out for. Discover key support and resistance levels, technical indicators, and expert predictions, all aimed at helping you make informed investment decisions. Stay updated with the latest Ethereum price movements and find the next target for ETH in this comprehensive analysis.
ETH Price Analysis: Bearish Signal Confirmed as Ethereum Drops Below Moving Averages
After a period of stability near the critical level of $1.8K, Ethereum (ETH) has experienced a significant downturn following a notable rejection. This sudden cascade has caused the price to drop below the 100-day and 200-day moving averages (MAs), confirming a bearish signal for the ETH market.
Technical Analysis: Daily Chart
Examining the daily chart, we can see that a prolonged phase of quiet price action near the $1.8K resistance level led to a sharp downward movement, breaching the 100-day and 200-day moving averages positioned around $1,835 and $1,800 respectively. The market is generally considered to be in a bearish phase when the price resides beneath the 200-day moving average line, which is widely recognized as a pivotal trend indicator.
Although the price has found short-term support at $1,650, potentially setting the stage for a bullish rebound and forming a pullback, the recent decline has shifted the market structure to mostly bearish. As a result, there is an increased likelihood of a retest of the $1,400 level in the coming weeks.
Technical Analysis: 4-Hour Chart
Turning to the 4-hour timeframe, it becomes evident that the price has broken below the static support at $1.8K, leading to a rapid and forceful downward move. However, the mentioned support level has so far held the price, and the Relative Strength Index (RSI) indicator has rebounded from the oversold zone, indicating the potential for a short-term consolidation phase.
Considering the recent price action, it is likely that a consolidation period will develop between the support at $1,650 and the resistance around $1.8K in the mid-term. This scenario is expected before sellers potentially make another concerted push to drive the price to lower levels.
On-chain Analysis
Analyzing the fund holding metric, we can observe a significant trend shift for Ethereum since June 2022. Unlike Bitcoin, which has experienced intermittent periods of price upticks accompanied by various fund distribution zones, Ethereum has seen a consistent downtrend in fund holdings and distributions during this period.
This decline in the interest of asset management funds (such as ETFs and trusts) to indirectly invest in Ethereum contrasts with Bitcoin’s market, where specific periods of increased demand and fund distribution can be identified despite fluctuations. Consequently, there is a gradual reduction in the funds’ market participation, leading to diminished trading liquidity and overall interest in Ethereum. To experience a sustainable price upswing, a steady rise in investment interest from these funds is crucial.
Currently, the decline in fund engagement reinforces the need for a cautious approach, especially when considering other data points. Constantly tracking the trends of this indicator can potentially provide valuable insights into determining the future trajectory of the Ethereum market.
Disclaimer: The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of [Your Company Name]. This article is for informational purposes only and should not be considered as investment advice. Conduct your own research before making any investment decisions.