Ethereum [ETH] Logs First Negative Closing after 10 Weeks of Uptrend – Will $210 Hold?


ethereum

Ethereum [ETH] Logs First Negative Closing after 10 Weeks of Uptrend – Will $210 Hold?

The bears in the crypto-market yesterday pulled Ethereum’s price to test low at $211.

Nevertheless, it witnessed a buy back in the following hours facing resistance at $220. However, while the volume of a buy back below $210 was considerable on 27th, the buying action yesterday was on low volumes.

On the daily charts, the price is holding above the 50-Day Exponential Moving Average as support. The price of Ehereum [ETH] at 5: 00 hours UTC on 2nd March is $221.

ethereum usd chart
ETH/USD 1-Day Chart on Bitstamp (TradingView)

On the weekly scale, it records the first negative closing since December 2019. Price witnessed a 21% correction after the 130% rise from December lows (at nearly $125) to a high at $290.

The weekly sequential count is suggesting is currently at a critical 9 candle. Hence, a short to mid-term reversal of the bulls can be expected. Moreover, the daily sequential count is negative as well.

ethusd chart
ETH/USD 1-Week Chart on Bitstamp (TradingView)

On the 4-hour BTC chart, prominent chart analyst, Horn Harris posts analysis of a pullback to support of the parallel range . As long as price continues to hold the range bottom as support accumulation to the upside can be expected.

ethusd 4--hour analysis
ETH/USD 4-Hour Price Analysis (Source: Twitter)

In case of further pullback, the support to price is at $180-$190 range above the 200 Day Exponential and Simple Moving Average.

On the network front, the number of transactions per day is consistent with the average over the last two quarters. The total mining hash rate has increased about 20% since the beginning of the year fueled by increase in price and restoration of ‘normal’ mining rewards.

ethereum nvt ratio
Ethereum Price and NVT Ratio Chart (Source)

However, the NVT ratio is on the higher, suggesting that the market value might be towards the over-priced region. Nonetheless, non-value network transactions, along with DeFi growth continue to add strength to the network.

Do you think the bears will continue to strike blows or a support will hold? Please share your views with us. 

Author: Nivesh Rustgi
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com
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Nivesh Rustgi 1181 Articles
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com
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