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Ethereum analysis

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The correction in the key cryptocurrency Bitcoin (BTC) also caused a setback in the second largest cryptocurrency Ethereum (ETH). Since the last price analysis on February 23, the ether price has corrected by a good seven percentage points to currently $1,540. As a result of the negative news about the US crypto bank Silvergate, Ethereum slipped below the moving average line EMA200 (blue) for the first time. If this important average line is not recaptured in a timely manner, the correction threatens to widen. However, the price forecast for the current year as a whole does not affect the current price consolidation. Now it is up to the buyer side to defend the cross support at 1,503 US dollars in order to avert a direct pullback towards the green support zone.

Price Analysis Ethereum (ETH) 09.03.2023
Course analysis based on the pair of values ETH/USD on Bitfinex

Ethereum: Bullish price targets for the coming weeks

Bullish price targets: 1,549 USD, 1,588 USD, 1,654/1,679 USD, 1,723 USD, 1,776 $1,834, $1,913, 1,958/2,013 USD, 2,089 USD, 2.162 $2,305/$2,448

The Ether price recently fell back below the EMA50 (orange) and the EMA200 and was unable to recapture these moving averages – a first warning signal for the bulls. Only a recovery back above the resistance at $1,588 would give the buy side some breathing space. In addition, the recently declining trading volume should increase again significantly.

For a liberation, the ether course must then quickly target and overcome the yellow resistance area between $1,654 and $1,679. Only then does the chance of a new attack on the highs from the previous month increase. Between $1,723 and $1,776 would be a decision for the coming weeks of trading.

A correction in the US dollar index (DXY) would have a supportive effect. This has recently increased significantly and acted as a headwind on the crypto market. If Ethereum manages to break out of the resistance level at USD 1,176 at the end of the day, the focus will shift to the intermediate target of USD 1,834. This price level is derived from the parent 23 Fibonacci retracement. A jump above that would open the way towards $1,913. This would activate the medium-term blue target zone as a price target.

This is where the high from August 2022 runs. If Ethereum reaches the resist at 2,013 US dollars, profit-taking can be expected. If the bulls sustainably overcome this area, the chart image will continue to brighten. The next targets at US$ 2,089 and US$ 2,162 should be approached. These price levels are derived from the significant low from January 2022.

The maximum rise area remains unchanged between $2,305 and $2,448.

Bearish price targets for the coming trading weeks

Bearish price targets: $1,503, 1,476 USD, 1,425 USD, 1,397/1,352 USD, USD 1,297 / USD 1,274, USD 1,232, 1,190/1,150 $1,102, $1,074

The bears are undoubtedly in control at the moment. In order to initiate a trend-following movement to the south, it is now necessary to cap the ether course in the area of ​​1,588 US dollars. Then the cross support around 1,503 US dollars per daily closing price has to be broken through dynamically.

If the ether course gives up this zone in the ellipse, the correction immediately extends to the green support zone. The previous month’s low, the 50 Fibonacci retracment of the current correction movement, coupled with the supertrend, act as support here.

If the ether price does not stabilize here, the chart picture will continue to cloud over and the golden pocket between 1,395 US dollars and 1,352 US dollars would be activated as a price target. Here the first buyers are likely to venture a new entry.

On the other hand, if Ethereum gives up this strong support, a relapse to the breakout level of the price rally is likely. Unchanged, the zone between $1,297 and $1,274 acts as the maximum price target on the downside.

Ethereum: A look at the indicators

The RSI as well as the MACD indicator both show an active sell-signal on a daily basis. However, the RSI looks increasingly oversold. A bullish price divergence has also developed in the 1-hour chart, which would speak for a slight price recovery.

In the weekly chart, the MACD still has an active buy-signal. However, the RSI indicator is already heading south again. Only a breakout above the upper edge of the neutral zone at 55 would generate a fresh long signal here.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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