Ethereum Price Prediction: ETH Flashes Multiple Bearish Signals

Last Updated July 23rd 2021
3 Min Read

Daily Ethereum ETH Technical Analysis
  • Ethereum’s Parabolic SAR has reversed from bullish to bearish.
  • The MACD shows that the market momentum has switched from bullish to bearish.

While Ethereum is still managing to trend above $1,000, things don’t look that good for the smart contract platform leader. Multiple indicators show that a further price crash is on the cards.


Both Daily and 4-hour Charts Flash Sell Signs

As per the daily chart, the price has dropped by $235, going down from $1,280 to $1,045 over the last 4 days. In this price chart, two indicators show us that the price's overall outlook is very bearish. Firstly, the parabolic SAR has reversed from bullish to bearish following this Monday’s drop.

eth/usd daily chart 011321

Image: ETH/USD daily chart

Secondly, the moving average convergence/divergence (MACD) shows us that it has switched from green to red. This indicates that the overall market sentiment is negative. IntoTheBlock’s IOMAP tells us that there is a lack of healthy support levels on the downside, which gives further credence to our pessimistic outlook. 

eth/usd volume chart 011321

Image: IntoTheBlock

It seems like the only level of note on the downside is at the 20-day SMA ($945). Finally, let’s shorten our time frame from 1-day to 4-hours.

eth/usd 4-hour chart 011321

Image: ETH/USD 4-hour chart

In this time frame, we can see that the 50-bar SMA is on the verge of the 20-bar SMA to chart a bearish cross pattern. As such, we can expect the price to fall more.


92% ETH Addresses Are In Profit

Bitcoin and Ethereum wallet addresses are currently in profit, according to recent analytics data. However, the number of profitable ETH addresses surpass those of BTC. As per Intotheblock, 88% of Bitcoin addresses (33.79 million) are profitable at the moment.

Glassnode data indicates that despite BTC’s recent price correction, other on-chain fundamentals look strong, pointing to a healthy blockchain network. Glassnode added that the amount of BTC wallets with 1,000 coins has been increasing instead of wallets with a larger or smaller amount of coins. 

While BTC dipped in value today, on-chain fundamentals remain strong, pointing to a healthy network. Bitcoin mining difficulty and hash rate are at ATHs. 

As for ETH addresses, Intotheblock noted that the number of ETH wallets in the profit zone constitutes 47.09 million (91.8% of wallets), which is more than the amount of profitable BTC addresses with a balance on them. 

Other top-line altcoin addresses are also profitable, including Litecoin (70%), Cardano (81%), Bitcoin Cash (90%), and LINK (82%).


Key Price Levels To Watch For ETH

Since a further price drop is expected, the 20-day SMA ($945) is a crucial level that has to be defended at all costs. If that doesn’t happen, it could be pretty catastrophic for the holders since the price will then fall to the 200-bar SMA ($790).