themorningcrypto

    Ethereum Retracted 23.6% Fib Level, But Tumbled Again

    Pathik Bhattacharya
    Pathik Bhattacharya
    Published on November 25, 2022 4:32 PM

    Updated on January 10, 2023 1:03 PM

    The price of Ethereum is slowing as it approaches the $1,187 barrier mark. The region implies various opinions and holds the market sentiment more tightly.
    Ethereum Retracted 23.6% Fib Level, But Tumbled Again
    Source: Unsplash

    The price of Ethereum has stalled as it approaches a critical juncture. The decline in momentum can be related to a dip in purchasing pressure for Bitcoin. Regardless, a conclusive flip of the immediate barrier might cause ETH to see a small run-up.

    The price of Ethereum increased by 7% after the Momentum Reversal Signal indicator flashed a buy signal on November 22. This critical indicator, as well as a bullish divergence, was highlighted in our earlier post. Investors should keep an eye on the next few days as ETH stays below the $1,187 mark.

    This view may persist as the weekend arrives, but Ethereum price traders should wait for the $1,187 barrier to be converted into a support floor before moving. If successful, ETH might reach previous highs of $1,290 and $1,350.

    Right now, on a 4-hr chart, Ethereum is making a channel-down pattern which indicates a bullish stance but for a swing or short-term trade. The support is already tested two times, and if another fall takes place, the price could go further down than the $1,079 mark.

    However, on the 24-hr chart, Ethereum is undergoing a descending triangle pattern which indicates a bearish movement for long-term holders. If the same remains constant, investors could expect a shortfall below the current support.

    The 4-hr Chart, Source: Tradingview

    The 24-hr Chart, Source: Tradingview

    The Consolidating Fib Retracement Region

    Ethereum tested 0 Fib and 0.236 Fib regions as the bear market stunned the bulls recently. 

    The trading price is consolidating below the 23.6% fib level showing better signs of stabilizing at the moment. 50%, 61.8% and 78.6% are very far to reach the moment. Ethereum will take a significant time to reach those levels in near future.

    Source: Tradingview

    The dissolution of FTX has also had an impact on the price of Ethereum (ETH). Ether has dropped by about 20% in the previous 30 days. At the time of publication, the price was $1,189, slightly above the critical support level of $1,100.

    The ETH price has found support in the immediate term at $1,171. However, if the critical resistance level at $1,230 is not broken in the following several days, a retest of the level at $1,100 is possible.

    The 30, 50 and 200 days moving average has also declined due to FTX solvency. The 30-day moving average is $1,356 followed by 50-day MA ($1,345) and 200-day MA ($1,498).

     

    Source: Santiment

    A crucial Bitcoin on-chain indication implies that this does not have to be the case. Because the crypto market is primarily reliant on Bitcoin as the largest cryptocurrency by market value, a BTC bottom might entail increased gains for altcoins, led by Ethereum.

    The MVRV identifies times of market excitement in which the market value was much greater than the actual value, which is the cost basis for Bitcoin purchases. This might indicate a likely bottom formation, especially when direction traders outperform HODLers with strong convictions, according to the research.

     

    Source: BitBy