ETH Technical Analysis: The Mark Of $1200 Can Stop The Fall

The possibility of forming a new growth wave has been highly questioned. For 11 weeks now, sellers have been able to close the weekly candle below the opening price. And all this is happening at average volumes. Welcome to the comfortable and joyful world of cryptocurrencies in 2022. Sellers have managed to lower the price to the range of the previous historical low – $1200-$1400. If buyers are able to keep this range, there will be a chance to form a rebound of the ETH price with the first target of $1700. By the nature of this rebound, it will be clear whether buyers will have a chance to continue their growth wave and test the mark of $2500. TradingView Chart Source: On this note, in addition to the fact that there is a liquidity zone, there is now a trend line of sellers. This trend line is kept by sellers from November 2021. And while it is under the control of sellers, we will not talk about more serious targets of increasing the ETH price. In the event of $1200 downfall in the weekly timeframe, investors should be patient and expect the ETH price of $700-$800.

ETH Technical Analysis On The Daily Timeframe

ETH Source: Analyzing the movement of ETH price on the daily timeframe, we can see that in the last three days of 11 June, trading volumes began to grow. This was due to a successful breakdown of sellers consolidating down around the $1700 mark. In our opinion, the positions of buyers who invested in ETH in February 2021 are being selected. If the $1200 range can absorb the entire offer of sellers with its limit orders, then we will expect at least a slight rebound of Ethereum to $1450. From this mark, another wave of fall may form. If it is gentle and without high trading volumes, then in the range of $1200-$1240 it will be possible to safely buy ETH with the first target of $1700. In the case of open aggression of sellers from the mark of $1450 should be expected to systematically push the price below the mark of $1200 and continue to fall with the first target of $1025. This mark is not visible in the weekly timeframe. However, it was from this mark that buyers were able to withstand the attack of sellers in January 2021.

ETHBTC Price Movement

TradingView Chart Source: The weekly chart of the ETHBTC price shows us that it is not always good when the price accelerates. In April 2021, the ETHBTC price went beyond its growth channel. However, this acceleration did not give any results to buyers in the future. After a long period of consolidation, the ETHBTC price returned to its harmful growth channel and has now stopped near its middle line. ETHBTC price rebound can be expected from this trend. However, it should be understood that the prospect of a continued fall in ETHBTC is still 20-30% down. It is after the test of the lower trend line of the growth channel that one can expect the formation of a new growth wave.


Back to top button