Ethereum Technical Analysis: ETH Continues To Trend Horizontally Between Key Levels

Daily Ethereum ETH Price Analysis

Last Updated July 23rd 2021
2 Min Read
  • Ethereum price has healthy support at $2,200.
  • The parabolic SAR and MACD indicate bullish sentiment.
  • The Ethereum price climbed from $1,800 to $2,225 between June 26 and July 3, gaining $425 in its overall valuation. Due to this climb, ETH successfully flipped the parabolic SAR from negative to positive. Following this rally, however, ETH has entered this lethargic horizontal trend.

    Ethereum Price Trapped Between Crucial Levels

    Since July 4, the Ethereum price is stuck between the $2,200 support wall and the 50-day SMA as it continues to hover horizontally around $2,250. The MACD indicates sustained bullish market momentum, but don’t expect any wild price swings.

    Image: ETH/USD daily

    ETH/USD daily chart 070821

    Looking at IntoTheBlock’s IOMAP, the Ethereum price has healthy support at $2,200. Previously, at this level, over 500,000 addresses had purchased almost 9.35 million ETH tokens.

    ETH/USD volume chart 070821

    Ethereum Price On-Chain Activity Muted

    ETH/USD glassnode chart 070821

    “On-chain activity remains relatively muted for #Bitcoin and #Ethereum as USD denominated transfer volume returns to Dec-Jan 2020 levels #Bitcoin is settling ~$236M/day Chart #Ethereum is settling $160M/day in $ETH transfers.”

    Ethereum Price On-Chain Analysis – CryptoQuant

    ETH/USD cryptoquant chart 070821

    Ethereum futures open interest is steady.

    ETH/USD cryptoquant chart 2 070821

    "ETH 2.0 Staking fuels Ether's long-term performance."

    Goldman Sachs: Ethereum Flip Bitcoin’s Store of Value

    In a recent note to investors, Goldman Sachs outlined its reasoning behind the claim that Ethereum will eventually become a better store of value than Bitcoin. According to the note, the bank believes Ethereum currently looks like the digital asset with the highest real use potential. It added that it is the most popular development platform for smart contract applications, according to reports.

    Bitcoin may have the upper hand now given its first-mover advantage. However, BTC lacks some of the real use cases of Ethereum, it said. This is partly due to its slow transaction speeds of just 7 transactions per second (TPS). Ethereum in its current native state is not much quicker, however, with around 15-20 transactions per second. 

    The bank did state that neither crypto asset can compare with gold as a store of value, arguing that its high volatility does not make them comparable.

    “Gold is competing with crypto to the same extent it is competing with other risky assets such as equities and cyclical commodities. We view gold as a defensive inflation hedge and crypto as a risk-on inflation hedge."

    Notably, it did not compare the gains between the two. So far this year, gold has declined 5.4%, whereas Ethereum has made over 215% to current levels, and that includes a 46% correction. Goldman added that the competition between different crypto assets is preventing them from becoming safe-haven assets at this stage. 

    Interestingly, the banking giant's report from June contradicts its current findings. 

    "The argument that Bitcoin and cryptocurrencies are a digital version of gold does not confer any value to Bitcoin and other cryptocurrencies, because gold itself is not a consistent or reliable store of value. The Goldman Sachs Investment Strategy Group should sign off its research pieces on crypto with “Have Fun Staying Poor."

    Ethereum Price Is Expected To Reach These Levels

    The Ethereum price will keep hovering horizontally between the $2,200 support line and the 50-day SMA around $2,250.