Cryptocurrency investors continue to battle Ethereum’s bearish sentiment after the merge, as this could weaken further due to macroeconomic headwinds. In a sea full of dip buyers and optimists, it’s expected that crypto markets might lose their gains and be pressured primarily by the rapidly rising U.S dollar. However, ETH opens the week almost unchallenged, supported by defensive bulls and gaining 4% at the time of analysis. As the bearish sentiment continues to abate rapidly, earlier pressure on the heavily oversold ETH/USD pair will make a broad rally unlikely. Therefore, further losses are likely despite the rebound optimism. Since the end of September, ETH/USD has been trading further sideways, and as a result, the price of Ether fell towards the $1,200 support. Data from Santiment shows that Ethereum whale addresses have begun to amass ETH. 3.5 million extra Ether has been added to the portfolios of large wallet addresses that own one million or more of the cryptocurrency. There are 132 such addresses at the moment. Whales typically consider an oversold trend, a bullish signal, and a time for accumulation.
Key Levels
Resistance Levels: $2000, $1,700, $1,500
Support Levels: $1,300, $1,000, $879
ETH/USD Daily ChartTechnical analysis indicates an active rebound daily, with a test of the daily moving average (MA 50) expected. The price appears to be modestly returning to the bull zone, according to the medium-term momentum indicators, without endangering the general trend. ETH/USD is currently continuing to rise as buyers take control of the market and aim for the $1,500 resistance level.
The asset’s price has increased from its low point of $1,190 on October 20, 2022, to a high point of $1,338 so far this session. Rising bullish momentum can be seen in the daily relative strength index (RSI). The price levels of $1,500, $1,700, and $2,000 present significant resistance. On the downside, we have strong support at $1,200 (the ascending triangle zone), which is followed by a yearly low at $879.
ETH/USD 4-Hour ChartIn the 4-hour time frame, ETH’s consolidation period has been slightly more pronounced than anticipated, although the significant support level at $1,300 was repeatedly held. After consecutive bearish sessions, ETH/USD experienced a few positive sessions. The price is currently located above the MA 50 and MA 200 on the 4-hour chart and is trending inside a triangle pattern. The RSI exhibits consistent upward momentum.
Following a violation of the $1,300 resistance turned support zone, ETH/USD is beginning to emerge under intense technical buying pressure together with the larger crypto market. The primary barrier is found at levels between $1,500 and $2,000, and the ETH/USD pair is only bullish when trading above the level of $1,500.
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