April was a bloody month for cryptocurrencies, especially Ethereum. ETH prices have fallen from last night’s high of $ 3,580 to $ 2,700. Can you expect better performance in May?
Technical analysis Grizzly
The following chart shows the perpetual exchange data from FTX. ETH is trading on the marked long-term rising line (green).
This trend line supports prices since January 2021 based on the last 5 trials. ETH saw a bullish foot following each of these attempts.
Currently, ETH is heading for a sixth attempt on the line, with a blue horizontal level crossing the dynamic trend line for $ 2,500. Failures can be catastrophic for ETH.
Keep in mind that buyer takers are less dominant, as evidenced by Binance data. Past uptrends have been accompanied by an increase in buyer dominance, marked in yellow on the chart below. Unfortunately, there are currently no positive signals.
Main support levels: $ 2800, $ 2500, $ 2300
Major resistance levels: $ 3000, $ 3300
MA20: $ 2961
MA50: $ 3052
MA100: $ 2901
MA200: $ 3456
Over a four-hour time frame, the 0.786 Fibonacci retracement level provides support and has so far prevented ETH failures.
The Fibonacci level of 0.618, on the other hand, now also serves as a solid resistance level of around $ 2,900. Assuming that ETH can occur on the marked descending wedge (blue), it may show signs of reversal in the short term. If a high of $ 3,000 is formed, this can raise bullish sentiment.
Number of active addresses (14-day moving average)
meaning: The number of unique addresses active in the network, either sender addresses or recipients. Only addresses that were active in the confirmed transaction are counted.
This metric usually has a price trend and can be considered as an indicator of network condition. As prices rise, we expect more transactions on the network and more active addresses. This indicator has been on a downward trend, reaching a record low after hitting a record high in November.
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Cryptocurrency chart According to TradingView.