Ethereum Price Analysis: ETH Stuck Underneath The 20-day SMA

Daily Ethereum ETH Price Forecast

Last Updated July 23rd 2021
2 Min Read
  • Ethereum price flipped 20-day SMA from support to resistance this Tuesday.
    • The RSI shows that buyers and sellers are cancelling each other out.

    Between June 4 and June 11, the Ethereum price crashed from $2,860 to $2,350 – losing almost $500 in its overall valuation. During this crash, ETH managed to flip the 20-day SMA from support to resistance. Following this crash, Ethereum rose to $2,565 till June 14 but failed to cross the 20-day SMA.

    Ethereum Price Stuck Between Two Critical Levels

    Over the last two days, the Ethereum price has been hovering around $2,530 as the buyers failed to keep ETH above the 20-day SMA. As you can see, the bears have taken control of the market for two straight days following three bullish sessions. 

    Image: ETH/USD daily

    ETH/USD daily chart 061621

    Looking at IntoTheBlock’s IOMAP, we can see that the Ethereum price has healthy support at $2,500. Previously, at this level, 640,000 addresses had purchased over 10 million ETH tokens.

    ETH/USD volume chart 061621

    Ethereum Price On-Chain Analysis – Santiment

    ETH/USD santiment chart 061621

    "With #Ethereum rebounding above $2,600 earlier today, we see that the long-term growth rate of $ETH whale addresses with 10k to 100k tokens is staying near #AllTimeHighs despite the dropoff from May. Meanwhile, addresses with 10-10k continue falling."

    Ethereum Price On-Chain Analysis – Glassnode

    ETH/USD glassnode chart 061621

    "#Ethereum $ETH Exchange Inflow Volume (7d MA) just reached a 3-year low of 6,354.374 ETH. A previous 3-year low of 6,525.275 ETH was observed on 16 December 2019."

    ETH/USD glassnode chart 2 061621

    “#Ethereum $ETH Number of Exchange Withdrawals (7d MA) just reached a 16-month low of 378.107. Previous 16-month low of 378.887 was observed on 04 April 2020.”

    ETH/USD glassnode chart 3 061621

    “#Ethereum $ETH Exchange Inflow Volume (7d MA) just reached a 17-month low of 6,611.553 ETH. Previous 17-month low of 6,689.804 ETH was observed on 28 January 2020.”

    Ethereum EIP1559 Testnet Block Set

    Ethereum Improvement Proposal (EIP) 1559, the fee-burning Ethereum upgrade, is set to have its first testnet block on Ropsten on June 24, at block number 10499401. Tim Beiko, the Ethereum 1.0 coordinator, said:

    With all clients comfortable with their 1559 implementation, we agreed it made sense to set testnet blocks now. Some of the JSON RPC changes mentioned at the beginning may come after the testnet forks, but all the consensus-related changes for 1559 are ready to go!

    A week after, the Proof of Authority (PoA) Goerli testnet is to be forked at block number 5062605 on June 30, followed by a further fork of Rinkeby on July the 7th. If everything goes as planned, the process of upgrading the live network will begin soon. Beiko added:

    The mainnet block will be chosen after we see testnets forking smoothly, and hence will require another client upgrade.

    If the testnet does not cause any potential delays, then the fee-burning upgrade is now at the final stages before a live launch. EIP1559 changes the current algorithm to set fees at such a level that there is 50% extra capacity, with it setting a base fee that is burned.

    The upgrade itself also doubles the gas limit, adding a bit of capacity to the Ethereum network. The fee burning further potentially reduces the total supply during highly congested periods at a rate of about $50 million a day. So, affecting both the network and Ethereum as an investment asset, the upgrade now just weeks away.

    Ethereum Price Is Expected To Reach These Levels

    The Ethereum price is now going to keep trending horizontally between the $2,500 support and the 20-day SMA.