Ethereum Technical Analysis: ETH Looks To Drop To The $3,000 Support

Daily Ethereum ETH Price Analysis

Last Updated August 11th 2021
2 Min Read
  • Ethereum price dipped back into the upwards channel.
  • RSI shows that ETH is still slightly overbought.

Over the last three days, the Ethereum price is hovering in a $200 channel between the $3,200 resistance and the $3,000 support wall. This somewhat horizontal movement has dropped ETH back into the upwards channel. The relative strength index (RSI) indicates that the asset is still overpriced so a further drop is expected.

Ethereum Price Bounces Up From The $3,000 Support Wall

Between July 21 and August 7, the Ethereum price has jumped from $1,790 to $3,170 – gaining almost $1,400 in its overall valuation. During this jump, ETH managed to:

  • Flip the 20-day, 50-day, and 200-day SMAs from resistance to support.
  • Reverse the MACD from red to green.

Due to this rise in price, Ethereum managed to push the relative strength index (RSI) into the overbought zone which has forced ETH to hover horizontally around $3,100.

Image: ETH/USD daily

ETH/USD daily chart 081121

Looking at IntoTheBlock’s IOMAP, the Ethereum price faces strong resistance at $3,200. Previously, at this level, almost 100,000 addresses had purchased almost 190,000 ETH tokens.

ETH/USD volume chart 081121

Ethereum Price On-Chain Analysis – Santiment

ETH/USD santiment chart 081121

"One of the key indicators we look to as a sign that a ranging or #bearish period is coming to an end in Mean Dollar Invested Age. We're seeing that the average age of dollars for both $BTC & $ETH is no longer rising as dormant investments are moving!"

ETH/USD santiment chart 2 081121

“Market data shows the proportion of #Ethereum held on centralized exchanges has dropped to 9.4%. This is the lowest level in nearly three years! Decentralization is the way to go.”

ETH/USD santiment chart 3 081121

"#Ethereum's top addresses are providing fantastic insight into where markets are heading. Lately, their percentage of $ETH supply held is showing that proper distribution is what we want to see. Buy when they hold less, and sell when they hold more."

ETH/USD santiment chart 4 081121

"With #Bitcoin and #Ethereum both enjoying near 3-month price highs, our MVRV data indicates traders are at their highest level of profit in quite some time. Dip buyers have cashed in nicely, with $BTC's 30d avg. returns at their highest since February."

Ethereum Price Is Expected To Reach These Levels

The Ethereum price is still a little overpriced, as per the RSI. It seems like ETH is going to drop to the $3,000 support wall.

Top Brokers in
    All Regulated Brokers
    67% of retail clients lose money when trading CFDs with this provider.