Ethereum Technical Analysis: ETH Is Consolidating Below 20-day and 50-day SMAs

Last Updated July 23rd 2021
3 Min Read

Daily Ethereum ETH Price Analysis
  • The MACD for Ethereum Price shows increasing bearish momentum.
  • The parabolic SAR has reversed from positive to negative.

The Ethereum price dropped from $1,915 to $1,685 between March 13 to right now. During this downward surge, ETH managed to flip the 20-day and 50-day SMAs from support to resistance. Let’s take a closer look with technical analysis.

Ethereum Price Growth Stopped By 20-day SMA

Both the MACD and parabolic SAR shows us that the current market sentiment is negative so it is highly unlikely that ETH will manage to overcome the 20-day and 50-day SMAs. 

eth/usd daily chart 032421

Image: ETH/USD daily

Looking at the IOMAP, the $1,815 resistance remains the most formidable resistance line. Previously,1.2 million addresses had purchased 11.14m ETH tokens here. On the downside, we have moderate support walls.

eth/usd volume chart 032421

Image: IntoTheBlock

Ethereum Whales Keep Accumulating

Santiment Chart

Santiment shared the above chart on Twitter, noting how the whales have been accumulating ETH.

"#Ethereum's top 100 non-exchange addresses now collectively hold the MOST tokens they have since July, 2016. And the top 100 largest $ETH exchange addresses continue moving in the opposite direction, as they hold the LEAST since November, 2018."

SEC: Bitcoin and Ether Documents Are Not Relevant to Ripple Case

In a recent letter, Dugan Bliss, senior trial counsel at the US SEC, asked Judge Sarah Netburn not to compel the agency to present documents about Bitcoin and Ethereum.

Such discovery is inappropriate and should be denied, as at least one district court in this District has already held in indistinguishable circumstances in a digital asset case. 

The SEC wrote that such a request is “disproportionate” and “overboard.” Earlier, Ripple had filed a pre-motion letter to force the production of the aforementioned documents. The firm noted that XRP was withholding “potentially exculpatory evidence.”  

The SEC had agreed to reveal its e-mail communications about Ripple and XRP with exchanges along with documents from other cases that mention the token even though they are not relevant “to any claim or defense.” 

However, this wasn’t enough to reach a compromise with Ripple, and the blockchain company later moved to file the above-mentioned pre-motion letter. Ripple lawyers are persistently trying to convince the court that XRP is no different from Bitcoin and Ether. However, the SEC argues that the defendants’ statements make it obvious that BTC and ETH are dissimilar when it comes to securities laws:

In short, as the cases make clear, simply invoking comparisons to Bitcoin and Ether (or labeling a digital asset a currency) is not a cognizable defense. Discovery pertaining to Bitcoin and Ether can therefore have no bearing on the issues in this case or at least is not proportional to the needs of the case, as Judge Hellerstein recently held in an SEC digital asset case.

Furthermore, the SEC pointed out that both Telegram and Kik tried to argue that their respective tokens aimed to function as a currency. However, their arguments got rejected by the courts:

Applying that law, courts have uniformly rejected arguments that a digital asset is not a security because it resembles Bitcoin or Ether or labeled a currency.

Ethereum Price Is Expected To Reach These Levels

It seems likely that Ethereum price will likely drop to $1,600 support if it doesn’t get an injection of bullish momentum.

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