Ethereum Technical Analysis: ETH Drops Below The Parallel Channel

Daily Ethereum ETH Price Analysis

Last Updated July 23rd 2021
2 Min Read
  • Since April 15, the Ethereum price has lost nearly $400.
  • The parabolic SAR has reversed from bullish to bearish.
  • Between April 8 and April 15, the Ethereum price had jumped from $1,960 to $2.515, as it was trending comfortably in an upward channel formation. However, after touching the upper bound of the channel, ETH has crashed down and broken below the upward channel.

    Ethereum Price Drops By 16% Over The Last Three Days

     Over the last three days, the Ethereum price has dropped by $400 or 16%. Due to this drop, the Ethereum price has fallen below the upward channel formation and flipped the 20-day SMA from support to resistance. The MACD shows that the market momentum is on the verge of reversing from bullish to bearish, while the parabolic SAR has flipped from positive to negative.

    Image: ETH/USD daily

    Ethereum Daily Chart

    Looking at the IOMAP, Ethereum price faces a strong resistance barrier at $2,200. Previously, at this level, 160,000 addresses had purchased 8.56 million ETH tokens.

    Image: IntoTheBlock

    Ethereum Volume Chart

    Ethereum Price On-Chain Analysis

    Glassnode shared the following charts to give their thoughts on the on-chain activities of Ethereum.

    Glassnode Ethereum Chart

    “#Ethereum $ETH Number of Exchange Deposits (7d MA) just reached a 1-month high of 1,089.613”

    Glassnode Ethereum Chart

    "#Ethereum $ETH Amount of Supply Last Active 1w-1m (1d MA) just reached a 4-month low of 12,374,410.835 ETH"

    Two Ethereum ETFs Are Live In Canada Now

    Purpose Investments and CI Global Asset Management, two Canadian firms, have recently received approval to launch an ETH ETF (exchange-traded fund). 

    Purpose is the manager of Purpose Ether ETF, and Ether Capital Corporation is all set to consult. The ETH will be kept in cold storage with Gemini acting as the sub-custodian. CIBC Mellon Global Securities will serve as the fund administrator. 

    CI Global Asset management plans to launch CI Galaxy Ethereum ETF on April 20 on the Toronto Stock Exchange (TSX). This is subject to TSX approval. CI GAM is the manager of the ETF, and Galaxy Digital Asset Management (“GDAM”) is expected to operate as the sub-advisor.

    Ethereum Price Is Expected To Reach These Levels

    Looking at the Ethereum price chart, the buyers will want to take over and push ETH back into the channel. However, to do so, the bulls will need to break past the $2,200 barrier.