ETH Plunges Below $1,200 and Recovers Amid Recent Massive Volatility, So What? (ETH Price Analysis)
After a long period of defending $1,200, Ethereum momentarily fell below this level, followed by a quick recovery to $1,343. This price action highlights the importance of demand below the $1200 support level.
The daily chart:
As of this writing, the market has recovered from the volatility caused by the recently announced CPI figures for September. Ethereum has returned to the 200-week moving average (in white). Given the 61.8% Fib level at $1,210 (in yellow), this level is expected to be critical to defend.
In a bearish scenario, if ETH drops back below $1,200, the likelihood of continuing the correction increases accordingly. The longer the market struggles with this level, the more buy orders will be filled, which will weaken the buyers. Therefore, failure of this level could lead to touching the psychologically important level of $1,000.
The negative sentiment, on the other hand, will subside if the horizontal level at $1,400 (in red) is recovered. In this scenario, ETH might even put an end to the ongoing bearish structure in the short term.
Main support levels: $1210 and $1000
Key resistance levels: $1400 and $1550
Daily Moving Averages:
The ETH/BTC chart:
ETH shows a strong correlation with Bitcoin over the past 23 days. Typically, spot price trading below the 200-day moving average (in white) suggests the dominance of bearish sentiment in the market. Additionally, the range from 0.0645 to 0.0663 BTC (in green) looks like a support zone structure. If the price of ETH drops below, the market may see another correction. If this turns out to be the case, further support can be expected at around 0.06 BTC.
Main support levels: 0.0645 & 0.06 BTC
Key resistance levels: 0.073 & 0.08 BTC
Taker Buy-Sell Ratio (SMA 14)
Definition: The ratio of buy volume divided by sell volume of takers in perpetual swap trades.
Values above 1 indicate bullish sentiment is dominant, while values below 1 indicate bearish sentiment is dominant.
According to data from CryptoQuant, takers still tend to fill sell orders because the index is below 1 (in blue). As a result, this metric rose above 1 for a brief period in early October, but buyers failed to maintain positive momentum.
The pattern highlighted in this chart indicates that the buy-side of takers in the derivatives market has fallen in the macro trend since mid-July (in red), and any short-term rally is likely to fail until the macro trend changes direction. .
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Cryptocurrency charts by TradingView.