Ethereum Technical Analysis: 20-day SMA Has Stopped ETH’s Downtrend

Daily Ethereum ETH Price Analysis

Last Updated July 23rd 2021
1 Min Read
  • Ethereum price has an immediate support wall at the 20-day SMA.
  • The MACD shows that market momentum is about to reverse from bullish to bearish.
  • For the last three days, the Ethereum price has been trending horizontally around $2,650 stuck between the $2,750 resistance and the 20-day SMA. Since the beginning of this month, the Ethereum price has been stuck between $2,645 and the 50-day SMA.

    Ethereum Price Drops Towards $2,500

    After failing at the $2750 resistance barrier, the Ethereum price has dropped to $2.530 and is sitting on top of the 50-day SMA. However, this level will likely break soon, since the relative strength index (RSI) shows that ETH can drop some more before getting oversold. The MACD also shows that it is on the verge of reversing from bullish to bearish.

    Image: ETH/USD daily

    eth/usd daily chart 060921

    Looking at IntoTheBlock’s addresses metric, we can see that the number of new addresses entering the ecosystem had nearly doubled from 158,800 to 312,000 between June 3 and June 5. Since then, the number has dropped to 177,000. This is a bad sign as it shows that the network has gotten progressively weaker.

    Image: IntoTheBlocks

    Ethereum ETH New Addresses

    Ethereum Wobbles Under Negative Sentiment

    Ethereum ETH Sentiment

    "#Ethereum has been quite a roller coaster these past few hours, and our team is looking for signs of crowd capitulation as a clear signal that it's buy time. Read our study on $ETH's sentiment, exchange inflow, age consumed, average fees, & more."

    Ethereum Price Is Expected To Reach These Levels

    The Ethereum price will likely drop below the 50-day SMA and crash to the $2,000 psychological level. A further drop will take ETH to the 200-day SMA ($1,755).

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