Technical Analysis
- The price of ETH has dropped below the 100-day and 200-day moving averages, signaling a bearish trend.
- The market is currently in a bearish phase, as the price is below the 200-day moving average.
- There is a possibility of a bullish rebound and pullback if the price holds at the $1,650 support level.
- However, the market structure has shifted to mostly bearish, increasing the likelihood of a retest of the $1,400 level.
4-Hour Chart
- The price has broken through the support level at $1.8K, leading to a rapid downward move.
- The $1,650 support level has held the price so far, and the RSI indicator suggests a potential short-term consolidation phase.
- A consolidation period between $1,650 support and $1.8K resistance is expected before another push to lower levels.
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On-chain Analysis
- Ethereum has seen a consistent decline in fund holdings and distributions since June 2022.
- Unlike Bitcoin, there is a lack of interest from asset management funds to invest indirectly in Ethereum.
- This decline in fund engagement results in reduced trading liquidity and overall interest in Ethereum.
- A steady rise in investment interest from these funds is needed for a sustainable price upswing.
Hot Take
The recent downturn in Ethereum’s price and the decline in fund engagement indicate a bearish trend for the cryptocurrency. The market is currently in a consolidation phase, but there is a possibility of a retest of lower levels in the future. To see a sustainable price increase, Ethereum needs a rise in investment interest from asset management funds.
