This is the Next Bearish Target for ETH Bears if $1.7K Falls (Ethereum Price Analysis)
Ethereum’s price has recently broken below the 100-day moving average, resulting in a decline toward the significant support region of around $1.7K.
It is crucial to closely monitor the price action in this important area as it may provide a clear indication of the next movement of ETH’s price.
Ethereum Price Technical Analysis
By Shayan
The Daily Chart
Ethereum had been struggling to breach the 100-day moving average for a prolonged period but has finally broken below it on June 10th, indicating a bearish outlook for the mid term.
However, the ETH price has reached the substantial support region at $1.7K, where the bearish momentum has halted, leading to a stable price action at this level. If selling pressure persists and causes a further decline below this support region, the bears’ next target would be the 200-day moving average at $1625.
The 4-Hour Chart
On the 4-hour chart, the price has finally dropped below the lower trendline of the channel and reached the major support zone at $1.7K. It holds significant psychological value as it has been supporting the price since March 2023.
Considering that the RSI indicator is currently around the oversold section, there is a possibility of a price retracement towards the lower trendline of the channel before initiating the next move. However, if the $1.7K level successfully prevents further decline and triggers a bullish rally, the next target for Ethereum would be the $2K resistance region.
On-chain Analysis
By Shayan
This graph illustrates the Ethereum Exchange Reserves metric for Binance and Coinbase exchanges in relation to Ethereum’s price. Recently, the Securities and Exchange Commission (SEC) filed a lawsuit against both Binance and Coinbase, which has generated significant fear within the market.
In response to this development, investors have withdrawn approximately $1.43 billion from the Binance crypto exchange and its U.S. affiliate following the regulatory actions. Binance experienced net outflows of $1.34 billion worth of crypto tokens on the Ethereum blockchain, while its U.S. affiliate, Binance.US, recorded net outflows of $70.8 million. Coinbase has also witnessed substantial outflows due to the prevailing uncertainty among market participants.
Consequently, the ETH Exchange Reserve metric has undergone a notable decrease for both exchanges, underscoring the fear and uncertainty triggered by the conflict involving the SEC, Binance, and Coinbase.
The post This is the Next Bearish Target for ETH Bears if $1.7K Falls (Ethereum Price Analysis) appeared first on CryptoPotato.
Filed under: Bitcoin - @ June 12, 2023 2:02 pm