Ethereum Technical Analysis: ETH Drops Down But About To Flash The Buy Signal

3 Min Read
Last Updated July 23rd 2021

Daily Ethereum ETH Price Analysis
  • The Ethereum price has managed to flip the parabolic SAR from bullish to bearish.
  • The MACD in the 4-hour chart shows increasing bearish momentum.

Over the last 48 hours, the bears finally took full control as the Ethereum price dropped from $1,940 to $1,642, losing nearly $300 in its overall valuation. Let’s take a closer look with technical analysis.

 

Ethereum Price Hovers Around $1,600

Over the last 48 hours, the Ethereum price has flashed the following two sell signals:

  • The 20-day SMA has flipped from support to resistance.
  • The parabolic SAR has reversed from positive to negative.

As of now, ETH has found healthy support at the $1,600 line.

eth/usd daily chart 022321

Image: ETH/USD daily

On the downside, Ethereum price has a moderate to weak support at $1,600, wherein 216,000 addresses had purchased 947,000 ETH tokens. On the upside, there are two strong resistance levels at $1,850 and 20-day SMA ($1,800).

eth/usd volume chart 022321

Image: IntoTheBlock

Looking at the 4-hour Ethereum price chart, you can see that the MACD shows increasing bearish momentum. However, do note that the TD sequential detector is about to flash the buy signal in the form of a red-nine candlestick. Hopefully, this will help ETH rise up.

eth/usd 4-hour chart 022321

Image: ETH/USD 4-hour

 

Ethereum Price Flash-Crashed 63% To $700 On Kraken Exchange

The price of ETH recently flash-crashed to a low of $700 on the Kraken crypto exchange. While most cryptocurrencies also saw serious declines, Ether's price on Kraken’s exchange definitely appears to have gone through a roller coaster.

In a span of one hour, the price went down to $700 – a massive 63% decline from the daily top on the exchange. The volume on that hourly candle was also substantial – a total of 75,500 ETH (worth around $131.5) million changed hands. 

eth/usd kraken exchange 022321

Image: Kraken 

The price did eventually recover and traded at somewhat normal levels. ETH continued to be down quite a bit but nowhere near the bottom charted on Kraken’s spot exchange. A flash crash happens when the price of an asset goes up and down a large magnitude in a short span of time. 

These events see the liquidations of many traders who’ve bet on the price going in the opposite direction, provided they use a derivatives platform. However, they can also benefit traders who have placed low buying orders as the price is likely to have them filled on the way down, charting massive gains as it recovers.



Ethereum Price Is Expected To Reach These Levels

The Ethereum price is likely going to drop down to the $1,600 support line before it manages to regain momentum and jump up.

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