Last updated on February 28th, 2022 at 04:45 pm
Recently, Ether (ETH), the native token of the Ethereum blockchain, plunged 47.7% from its all-time high of $4,878 reached in November 2021. In the past month, the correction phase caused a free fall of 30%. However, the past week has been significantly bullish as the token price jumped almost 15%.
Technical Analysis of Ethereum
Looking at the technical chart, a downtrend with lower high formations is possibly coming to an end in the price chart. The previous downtrend has been a continuation of bearish flag patterns, however, the recent jump reflects a possible bullish breakout.
The falling prices result in a death cross (the 50-day EMA crossing below the 200-day EMA) as the ETH token exchanges hand below all the crucial EMAs (20, 50, 100, and 200).
Relative Strength Indicator: The RSI slope escapes the oversold zone and breaks above the 14-day average. However, until the slope sustains above the 50% mark, the possibility of a reversal strives.
Moving Average Convergence Divergence Indicator: The indicator shows a bullish crossover in the MACD and signal lines in the daily chart. The recent rise in bullish histograms reflects the recent retracement.
The price action forms another bearish flag pattern with the recent retracement from the $2200 mark. The breakout of the pattern will lead to a rally to the 200-day EMA close to the $3380 horizontal level.
Crucial Resistance Levels: $3000 and $3380
Crucial Support Levels: $2555 and $2000
Crypto Fear And Greed Index
Taking the sentiments into account, the Greed and Fear index shows the past month under the extreme bearish influence. However, the sentiments have improved as compared to the previous two days.
With the gradual increase of bullish intentions, we can shortly overcome the sellers-driven market and recover slowly.
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