Ethereum Technical Analysis: ETH Has Flipped The 20-day SMA From Resistance To Support

3 Min Read
Last Updated July 23rd 2021

Daily Ethereum ETH Price Analysis
  • Ethereum price has jumped by $200 over the last three days.
  • IOMAP shows a lack of strong resistance levels upfront.

Between February 20 and February 28, the Ethereum price dropped from $1,950 to $1,415, losing a little over $500. Since then, the buyers gained momentum and managed to bump ETH to $1,745. Over the last three days, the buyers took complete control of the market.

Ethereum Price Sentiment Reversed From Bearish To Bullish

Over the three days back, the Ethereum price bounced up from the 50-day SMA and jumped from $1,520 to $1,750, gaining more than $200 in its overall valuation. During this jump, the parabolic SAR flipped from bearish to bullish. 

The relative strength index (RSI) is trending around 57.65, which means that it has more room to grow. It must also be noted that over the last two days, the 20-day SMA was flipped from resistance to support.

eth/usd daily chart 030821

Image: ETH/USD daily

As per IntoTheBlock IOMAP, the Ethereum price shows a lack of strong resistance levels upfront. On the downside, there is a healthy support at $1,550, wherein 535,000 addresses had purchased 12 million ETH tokens.

eth/usd volume chart 030821

Image: IntoTheBlock

Ethereum Accumulation On The High

Santiment Chart

Image: Santiment

On-chain analytics platform, Santiment, noted that Ethereum accumulation is on the rise:

“As #Ethereum rebounded above $1,685 today for the first time in 10 days, whales (owning 10k+ $ETH) now own 68.6% of the total supply. This is the highest % owned by whales since Nov, 2017. 10-10k addresses meanwhile, own the lowest % since Sep, 2017.”

On-chain Data Shows “Ethereum Killers” Are Far Behind

Despite soaring gas fees, Ethereum currently dominates the smart contract industry, according to various network usage metrics. The network effect of its large user and developer base appears to be enough to sustain ETH’s position as the second-largest cryptocurrency by market capitalization. 

However, some important on-chain metrics are starting to show a potential change in Etheruem’s dominance, raising questions about a possible "Ethereum killer" being able to outperform the top network.

Defillama Rankings

Image: defillama.com

According to the chart, the Ethereum network dominates decentralized applications (dApps). Due to its high gas fees, the Ethereum network appears to be at a disadvantage to its competitors when it comes to active addresses. TRON (TRX) recently surpassed Ethereum in daily active addresses, although this metric can be easily inflated. The TRON network has virtually zero fees for simple transactions, creating an unfair comparison.

By measuring effective transactions and transfers, addresses that are not contributing to the network can be excluded. By doing that, it becomes clear that TRON doesn't come anywhere close to Ethereum's numbers. However, Cardano's (ADA) recent price growth has led to a virtual tie between the two.

The TRON network holds more than 14.5 billion of the Tether (USDT) in circulation, which by itself should boost network usage metrics. Meanwhile, Cardano has 90% fewer daily active addresses than Ethereum. Yet, both these networks handle the same amount of transfers and transactions.

This is especially problematic as Ethereum handles 20 billion Tether tokens and also manages all the transactions of Chainlink (LINK), USD Coin (USDC), Wrapped ETH (WETH), etc. Hence, it makes sense for Ethereum to dominate the ranking as no other network is even close to its dApps. 

Additionally, when analyzing the transfer and transactions' value, Ethereum leads by 50 times if Cardano's aforementioned figures are excluded. Current data suggests that the “Ethereum killers” discussed above are unlikely to “flippen” the Ethereum network in the near future.

Ethereum Price Is Expected To Reach These Levels

Ethereum price will likely reach the $1,900 level as per the IOMAP.

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