After three weeks of strong uptrend, Ethereum lost nearly 10% of its market cap in just a few days, dropping from a high of $ 3547 earlier in the week to $ 3143. The US stock market is also falling back after a 20-day uptrend. In this analysis, we will look at where the key levels.
The daily chart:
On the daily timeframe, the bulls retreated after failing to break out of the overhead resistance at $ 3600, and the bears were able to push the price down to $ 3143. The ETH is currently struggling with the daily MA20 which stands at $ 3224 and it would look very promising if the bulls close the candle above it.
The major concern right now is that many participants are concerned about further price falls. The daily MA50 and MA100 are at $ 2900-$ 3000 as the support zone appears to be strong, and if the bears push the price below it, the recent uptrend is likely to be considered over and we may need to prepare. for the lowest levels. Conversely, the bulls need to break out of the MA200 and static resistance at $ 3600 to form a new uptrend, which could push prices even above $ 4,000.
Over the 4-hour period, the divergence formed below the key resistance level mentioned in the April 5 analysis caused the price to correct and Ethereum fell below the MA100 (marked in blue). The bad news is that ETH is forming a lower low, which is technically the beginning of a downtrend.
MVRV shows the average profit / loss of all coins currently in circulation given the current price. MVRV 60d is calculated on coins / tokens that have moved at least once in the last 60 days.
The MVRV 60d was able to cross the baseline with good momentum (it was the first time since hitting an all-time high) and has now changed direction. Of course, this is still not worrying and as long as this metric is above the baseline, the bullish trend can be hoped to continue. But it breaks the baseline, this could stop bullish hopes.
At the moment, it seems that having technical support is more important and has a greater psychological impact.
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