HomeCryptocurrency NewsETH Is Recovering From Its Downtrend, Says Tech Analyst

ETH Is Recovering From Its Downtrend, Says Tech Analyst

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ETH Recently Dropped to Weekly 50 Moving Average, and It’s Recovering From It.

Covered:

  • ETH Hit Weekly 50MA
  • ETH’s Charts (M, W, D)
  • Key Technical Levels

ETH’s 50SMA is Being a Good Support

ETH dropped about 17% last week, but its weekly 50MA is acting as a support. It is the first time price fell to weekly 50MA in almost two years, which is a long time.

It’s bullish if the price holds above this level. Let’s look at Ethereum on different time frames to anticipate what is likely to happen.

RECOMMENDED: HEDGE FUND: HALF THE WORLD’S TRANSACTIONS WILL BE ON ETHEREUM

 

ETH: Monthlyblank

The monthly chart still shows a clear uptrend, and the price is finding support off 8EMA (Yellow).

The momentum oscillator shows the Fast momentum line is still bullish but is below the Slow momentum line.

The squeeze indicator shows no squeeze, but the squeeze momentum is beginning to print blue (bullish but falling momentum.

We are about 50% through January, and we will keep an eye on this if this signal reverses or continues.


ETH: Weeklyblank

The weekly chart shows that price is hitting 50W MA (Salmon) for the first time since 2020.

It is holding above this level which is a good sign.

The momentum oscillator shows the Fast momentum is turning neutral and trying to cross into the bullish zone (upper half)

The squeeze indicator shows that ETH is in a medium-compression squeeze with a flat momentum.

 

ETH: Dailyblank

The daily chart shows that its downtrend is being disrupted as moving averages begin to trade sideways.

There is a good Fibonacci projection cluster support at around 3110.

The Momentum oscillator shows the Fast momentum (Yellow) is finding support above the Slow momentum (Red). This is a positive sign.

The Squeeze indicator also shows that the bearish momentum is slowing down as the red histogram (bearish and falling momentum) stopped printing. It’s printing a yellow histogram (bearish but rising momentum).

Price is still under 200MA (Purple), but ETH is trying to reverse its trend, and we will have to see how the follow-through goes.

The weekly chart shows that it’s making a recovery off 50MA (Salmon). If ETH holds above this level onward, its trend structure will remain bullish.

 

Key Technical Levels

Support: Lower price channel line

Support: 3110

Resistance: 3418

Resistance: Daily 200MA (Purple)

Resistance: Upper price channel line

Resistance + Point-of-control: 4085

Resistance: 4289

Resistance: 4380

* Price targets will be calculated once the daily trend becomes an uptrend.


Indicator Used: (Click Here)

  • Not Financial Advice

 

RECOMMENDED: IT’S TIME TO PAY ATTENTION TO ETHEREUM, ACCORDING TO ONE CRYPTO MARKET ANALYST

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