Ethereum Technical Analysis: Bulls Attempt Recovery After Devastating Thursday

Last Updated July 23rd 2021
2 Min Read

Daily Ethereum ETH Price Analysis
  • Ethereum price dropped to the $1,500-level this Thursday.
  • MACD shows increasing bearish momentum.

Since February 22, the Ethereum price dropped from $1,930 to $1,475, losing more than $450 in its overall valuation. However, it looks like the buyers have started a price recovery and jumped it back into the $1,500 psychological zone.

Ethereum Price Finds Critical Support At 50-day SMA

Looking at the daily Ethereum price chart, we can see that the 50-day SMA has stayed strong and prevented ETH from dropping even more. ETH will now want to break above the $1,575 resistance barrier to continue its uptrend.

eth/usd daily chart 022621

Image: ETH/USD daily

Previously, at this level, 529,000 addresses had purchased 5.25M ETH tokens. Immediately above this level there is another resistance at $1,650. These two levels are robust enough to absorb a lot of buying pressure.

eth/usd volume chart 022621

Image: IntoTheBlock

The 4-hour Ethereum price chart has flashed two different sell signals:

  1. The reversing of the parabolic SAR from positive to negative.
  2. The MACD which shows increasing negative market momentum.

eth/usd 4-hour chart 022621

Image: ETH/USD 4-hour

Ethereum-Based DEX Trading Volumes Have Crossed $120B In 2021

Ethereum-powered decentralized exchanges (DEXs) have processed over $120 billion in trading volume in 2021 so far despite the surging transaction fees. According to Dune Analytics, combined DEX volumes posted a new record of $63 billion in January. February's volume currently sits at $59 billion and is likely to hit $67 billion at the month’s end. 

DEXes have already processed more volume in the first two months of 2021 than during all previous years combined. 


Image: DuneAnalytics 

The DEX sector is currently dominated by Uniswap and Sushiswap. These two firms combined have accounted for 65% of February’s trade. Uniswap currently processes more than double Sushi’s volume, controlling nearly 50% of DEX market share. 

However, the weekly number of active traders on each platform shows that Uniswap represents more than three-quarters of Ethereum DEX users. Over the last week, nearly 142,000 unique wallets traded on Uniswap. This was followed by DEX aggregator 1inch with roughly 18,450 traders and SushiSwap with 8,911.

However, not all DEX trading activity is taking place on Ethereum. Binance Chain’s Pancake Swap is surging to report a daily trading volume of over $1.1 billion. Despite some users switching from Ethereum-based DEXes, confidence in the sector at large is at an all-time high, with the total value locked (TVL) in these exchanges sitting above $40 billion for the first time during recent weeks.

Ethereum Price Is Expected To Reach These Levels

Ethereum price should try to consolidate above the $1,500-level and break past the $1,575 resistance barrier.