June 22, 2021

Ethereum Faces Resistance Despite Signs of Recovery

2 min read

Ethereum looks primed to rebound while other cryptocurrencies continue to bleed after the recent crash.

Whales Make Money Moves

Ethereum saw its rate visit nearly 34% over the past three days. The abrupt bearish impulse appeared after Ethereum reached a brand-new all-time high of over $2,040. Due to the hype around such a substantial turning point, many overleveraged traders were eliminated of their positions as the cost of ETH crashed to $1,350.

Santiment’s Token Age Consumed index registered a substantial spike in idle ETH tokens exchanging hands after prices dropped. Such habits can indicate modifications in long-lasting holders’ perception of the market, and it tends to be preceded by increased volatility.

Ethereum's Token Age Consumed by Santiment

Ethereum’s Token Age Consumed

by Santiment Ethereum Flashes Buy Signal The Tom Demark(TD)Sequential indication provided a buy signal on ETH’s 4-hour chart. The bullish development established as a red nine candlestick as Ethereum retested the 2018 all-time high of$ 1,420. A spike in volatility around the present rate levels, as forecasted by the Token Age Consumed metric, could assist verify the TD setup’s outlook and cause a one to four 4-hour candlestick growth.

Ethereum needs to slice decisively through the 200 four-hour moving average at $1,620 to verify the positive thesis. If this were to happen, Ether’s market price may rise by 15% towards the 100 or 50 four-hour moving average.

These resistance levels sit at $1,800 and $1,850, respectively.

Ethereum US dollar price chart

ETH/USD on TradingView It deserves noting that as long as the $1,420 support holds, the chances for a rebound will remain high.

Breaking through this crucial cost difficulty might be ravaging for the Ethereum bulls. A downswing listed below $1,420 might trigger panic selling amongst investors causing another leg down to $1,100.

Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.