Ethereum Technical Analysis: ETH On The Verge Of Flashing Buy Signal In TD Detector

Daily Ethereum ETH Price Analysis

Last Updated July 23rd 2021
3 Min Read
  • Ethereum price flipped 20-day SMA from support to resistance this Tuesday.
  • The MACD indicates slight bearish momentum.
  • The Ethereum price faced major resistance at the 50-day SMA and has crashed from $2,860 to $2,350 between June 4 and  June 11. During this drop, ETH managed to flip the 20-day SMA from support to resistance. However, the buyers took over this weekend.

    Ethereum Price On The Verge Of Flashing Buy Signal

    The buyers had taken control of the Ethereum price this weekend as ETH jumped from $2,350 to $2,520 – gaining $170 in its overall valuation. Do note that Ethereum is on the verge of flashing a buy signal in the form of a red-nine candlestick. This could potentially take ETH even higher.

    Image: ETH/USD daily

    ETH/USD daily chart 061421

    Looking at IntoTheBlock’s IOMAP, we can see that the 20-day SMA ($2,590) provides strong resistance,. Previously, at this level, 365,000 addresses had purchased 4.52 million ETH tokens.

    ETH/USD volume chart 061421

    Ethereum On-Chain Analysis From Glassnode

    ETH/USD glassnode chart 061421

    "#Ethereum $ETH Number of Addresses Sending to Exchanges (7d MA) just reached a 1-year low of 430.649. Previous 1-year low of 431.095 was observed on 14 June 2020."

    ETH/USD glassnode chart 2 061421

    "#Ethereum $ETH Number of Receiving Addresses (7d MA) just reached a 5-month low of 11,268.143. Previous 5-month low of 11,269.988 was observed on 13 June 2021."

    ETH/USD glassnode chart 3 061421

    "#Ethereum $ETH Number of Transactions (7d MA) just reached a 4-month low of 47,476.786. Previous 4-month low of 47,487.964 was observed on 13 June 2021."

    ETH/USD glassnode chart 4 061421

    “#Ethereum $ETH NVT Signal (7d MA) just reached a 7-month low of 812.120. Previous 7-month low of 812.591 was observed on 13 June 2021.”

    CoinShares: Institutions Getting Into Ethereum and Other Altcoins

    Digital assets manager CoinShares said that investors are pouring millions of dollars into Ethereum (ETH), XRP, Cardano (ADA), among other crypto assets. In a weekly report, CoinShares broke down where investor money is flowing, showing that Ethereum (ETH) is the altcoin of choice for buyers, capturing inflows of $33 million.

    An excerpt reads: 

    Digital asset investment products saw outflows totaling $94 million last week. Despite the net outflows, we believe it implies an early turn in sentiment since May, where most product providers were seeing net outflows and sentiment was broadly negative. Ethereum continues to see inflows into investment products totaling $33 million, remaining the altcoin of choice for investors.

    Aside from Ethereum, XRP, ADA, and multi-asset products are the most popular investments, attracting inflows of $7 million, $4.5 million and $2.7 million, respectively. The report also showed that heavy negative sentiment is focused on Bitcoin as it saw outflows of $141 million, the largest single week of outflows on record. Data indicated that investors remain cautious after Bitcoin’s recent collapse from its all-time high of $63,500 down to $30,000.

    Digital asset investment product trading volumes highlight investors remain cautious in Bitcoin with weekly volumes having fallen 62% compared to last month. This has also been reflected in the broader Bitcoin ecosystem where volumes on trusted exchanges have fallen 50%.

    Notably, Bitcoin remains the largest CoinShares holding with over $30 billion in assets under management, followed by Ethereum with $12.32 billion.

    Ethereum Price Is Expected To Reach These Levels

    If Ethereum price conquers the 20-day SMA, it will reach $3,000 with ease.