ETH Facing Crucial Support, Is Dump to $1000 Next? (Ethereum Price Analysis)

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As predicted, the FOMC-mandated 75 bps rise negatively impacted traditional and cryptocurrency markets. Ethereum (ETH) dived 13%, dropping towards the $1200 level, recording its lowest level since mid-July.

Technical Analysis

By Grizzly

The Daily Chart

ETH is currently trading amid a critical support zone between $1230 and $1280 (in green), along with the 0.618 Fib Retracement level at $1210 (in yellow). After reaching this Fib level, ETH quickly climbed back by 6% earlier today.

In case this level breaks down in the coming days, then $1000 likely becomes the next significant support. Until ETH closes below $1,210, this scenario is not triggered. Alternately, if the bulls break above the range, the next major resistance is at $1420 (in red).

Hopes for a trend reversal are revived if they close a candle above this level. If not, the upward rise might be seen as a pullback.

Key Support Levels: $1210 & $1000

Key Resistance Levels: $1420 & $1650

Daily Moving Averages:

MA20: $1536
MA50: $1633
MA100: $1468
MA200: $2016

The ETH/BTC Chart

Yesterday, after more than two months, ETH / BTC trading pair closed below the 200-day moving average line (seen in white). Given the dominance of the bearish sentiment of the market, there is a considerable likelihood that 0.065 BTC (in green) will be retested as support.

The bulls are likely going to defend that level. This scenario will be invalid if the price retraces above the daily MA200 at 0.069 BTC.

Key Support Levels: 0.065 & 0.06 BTC

Key Resistance Levels: 0.069 & 0.075 BTC

On-chain Analysis

Active Addresses (SMA 30)

Definition: The total number of unique active addresses, including senders and receivers.

On-chain data shows that bullish trends are frequently, though not always, followed by an increase in the number of active addresses on the network – a sign of growth in on-chain activity.

Even if this index has marginally risen over the last several days, it is still not noticeable. On the other hand, the likelihood of a price decrease will increase if this metric declines once again.

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Cryptocurrency charts by TradingView.

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