Ethereum Technical Analysis: ETH Bears Push Towards $1,750 Psychological Level

Last Updated July 23rd 2021
3 Min Read

Daily Ethereum ETH Price Analysis
  • The Ethereum price has had three straight bearish days.
  • Grayscale has increased their ETH holdings by 53,000 in one day.

Ethereum price has dipped from $1,845 to $1,750 over the last three days, as bears increase their stranglehold on the market. In the process, ETH has managed to flip $1,775 from support to resistance.

 

Ethereum Price Loses Nearly $100 In Three Days

The $1,650 support line has prevented a further price as the buyers appear unwilling to let the Ethereum price drop any further. The RSI, which was crawling along the edge of the overbought zone, has now dipped further to the neutral area. This shows that the asset is getting less overvalued over time.

eth/usd  daily chart 021521

Image: ETH/USD daily

As we have identified before, the most robust support line on the downside lies at $1,650. Previously, at this level, 339,250 addresses had purchased 1.75M ETH tokens.

eth/usd volume chart 021521

Image: IntoTheBlock

 

Grayscale Purchases 53,000 ETH in One Day

Since the beginning of 2021, the value of Grayscale’s Ether (ETH) under management has doubled. According to Glassnode, the ETH under Grayscale’s management currently equals $5.5 billion.

While one of the factors for this increase is the token’s all-time high prices, the company has also made a series of ETH purchases. On Feb 11 alone, for instance, Grayscale purchased 53,000 ETH. 

eth/usd glassnode chart 021521

Image: Glassnode

Glassnode tweeted:

Since the Grayscale #Ethereum Trust reopened in February, at total of 195,000 ETH have flown into the trust. 53,000 #ETH were added yesterday alone. The current AUM of the ETHE Trust is $5.5B – more than double since the beginning of the year.

The company also shared a picture outlining the details about its holdings. 

eth/usd grayscale chart 021521

Grayscale tweeted the following along with the image:

02/11/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products. Total AUM: $36.8 billion

The Ethereum purchases come after Grayscale reopened its Ethereum trust to qualified investors on Feb 1 after closing the fund over the winter holidays. Grayscale’s tweet also shows how much the company has diversified since 2020. There are now trusts for Litecoin, Stellar, and ZCash. The XRP fund has been delisted, however, after the US Securities and Exchange Commission announced its lawsuit against Ripple. 

 

Ethereum Price Is Expected To Reach These Levels

The Ethereum price, under further bearish action, could drop to the $1,650 support barrier. However, it seems unlikely that ETH is going to drop any further.

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