ETH Analysis

Week marked by the general downward movement of the cryptoactive market, which is clearly seen in the total market capitalization graph, which made a downward movement of -28% in four days, marking lows at $1,100T which served as a support zone , just as it happened in June 2021.

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If we pay attention to the chart we can see this support zone and also the bearish guideline in force in the market that started in November. If we look at the RSI we see how in that November ATH a bearish divergence is formed in the RSI with respect to the price, generating that maximum lower than the previous maximum in the indicator.

I also consider it important to note that the trading volume in this downward movement has been much lower than that generated in the downward movement just a year ago, which adds some strength to that support.

Does this mean that the support is not going to break? Well, the reality is that there can never be such a certainty, but as indicated above, that the trading volume is lower in this decline, gives us a greater probability that the support will continue in force. In the event that the downward movement continues to generate new lows, the next support level is found at $800B.

Regarding the weekly analysis, this time I wanted to focus on one of the big players in the sector, $ETH, the second largest asset in the crypto market.

Like the rest of the market, it has suffered a pronounced bearish movement during this week that has generated new annual lows, so we are going to analyze its technical situation to see what we can expect in its evolution.

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The current situation is very similar to that of the total capitalization graph, generating new annual lows that for the moment respect the support zone of June 2021.

The downward trend of recent months continues in the market, and in the last month an acceleration trend has been created that increases the downward movement.

The areas to watch in the macro scenario are the June 2021 support at $1,700, which for the moment continues to leave that structure of long-term lows, and the $1,400 area, which already acted as support after breaking the 2018 highs. .

Although the distance of the price from the first support is quite close, the most correct thing is not to look for a reversal of the downward trend until the current situation changes, generating some kind of bullish envelope that generates higher highs and lows.

If we compare the evolution of $ETH with that of $BTC we can see how the downward movement this week has been more pronounced in $ETH, which has lost 10% more than $BTC, but if we take the reference of the June support of year 2021, in the case of $ETH the price has remained above the support, while $BTC has generated a minimum below, although for the moment without confirmation of the breakout, since no 1-day candle has closed for below the minimum.

If we look at the graph of the ETH/BTC pair, we can see how that difference between the current prices and the lows of June of last year in $ETH and $BTC, is shown as a growing trend in the ETHBTC pair.

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In this graph we can see how the price is very close to the trend line of the last year that can act as support.

The lack of volume in this area leads us to think of a consolidation phase that could continue to generate a new low, but with consistent support at 0.045 BTC, one of the key areas in this pair, which at certain times can be Very useful for rotating the market between the two assets with the highest capitalization.

As a conclusion, the bullish trend of ETH over BTC continues, although it shows certain signs of weakness in these corrective phases of the market.

Regarding the evolution with the dollar, the secondary bearish trend continues in the market, generating new annual lows, but maintaining long-term supports, which are the key areas for the future evolution of the price.

Finally, remember that nothing discussed in our articles can be considered as investment advice, each one must do their own analysis and develop their own operating strategy, from the Belobaba Crypto Fund team, we only show our analysis and our investment tools and how they help us in our operations when making decisions.