Exploring Ethereum’s Recent Price Movement 📉

Recently, Ethereum faced a significant rejection, leading to a notable 13.3% decline after breaking above the 100-day moving average. The current struggle lies in breaking below the 200-day MA, signaling a potential bearish trend if the breakout occurs. Let’s delve deeper into the technical analysis and on-chain data to gain a better understanding of Ethereum’s price movement.

Unpacking Technical Analysis 🔍

Insights from the Daily Chart 📊

Upon close examination of Ethereum’s daily chart, we observe the following:

After surpassing the critical 100-day moving average at $3,354, Ethereum faced a significant rejection, resulting in a 13.3% drop.
The decline led to a breach below the essential 100-day MA support region, hinting at a potential bull trap.
Ethereum found support around the 200-day moving average at $3.2K, a vital defense for buyers with significant demand potential.
A break below this crucial level could signal a bearish trend, possibly retracing towards the lower boundary of the multi-month wedge at $2.8K, highlighting the importance of Ethereum’s price action near the 200-day MA.

Insights from the 4-Hour Chart 📈

Key takeaways from Ethereum’s 4-hour chart include:

Ethereum encountered selling pressure near the pivotal $3.5K mark, leading to a breakdown below the short-term ascending wedge’s lower boundary.
This descent triggered a bearish trend, driving the price towards the previously breached descending trendline, validating the breakout.
Despite oscillating between the descending trendline’s support and the $3.3K resistance, the market sentiment appears bearish.
A bullish outlook hinges on breaching the $3.3K resistance, while failing to do so may steer Ethereum towards the $2.8K support level.

Insights from Onchain Analysis 💹

Examining Ethereum’s recent bearish reversal towards the critical $3K support zone provides valuable insights:

Identifying potential targets for a bullish trend is crucial for predicting future price movements.
Charts indicate liquidity zones above $3.5K and near $4K, attracting smart money to exploit these regions strategically amid recent bearish trends.
The presence of significant liquidity highlights the strategic positioning of short positions in the perpetual markets, influencing Ethereum’s price trajectory.

Concluding Thoughts on Ethereum’s Price Movement 🚀

As Ethereum navigates through its recent rejection, establishing support near the 200-day MA could be pivotal in determining its future trajectory. Keep a close eye on key resistance levels and liquidity zones to gauge market sentiments and potential price movements in the coming days.