Ethereum Technical Analysis: ETH Rallies To Take Down 50-day SMA

Daily Ethereum ETH Price Analysis

Last Updated July 23rd 2021
2 Min Read
  • Ethereum price had a hattrick of bullish days.
  • The parabolic SAR and MACD indicate bullish sentiment.
  • The Ethereum price jumped up from $1,800 to $2,285 between June 26 to June 30. During this climb, ETH managed to reverse the parabolic SAR, 200-day SMA, and 20-day SMA from bearish to bullish. However, following these five bullish days, the bears stepped back in for a price correction, wherein ETH dropped to $2,115 on July 1 and flipped back the 20-day SMA to resistance. However, as it turns out, this correction was short-lived.

    Ethereum Price Has Three Bullish Sessions In A Row

    Following the July 1 crash, Ethereum price has strung together three consecutive bullish sessions during which it rose from $2,090 to $2.350. In the process, the buyers successfully reclaimed the 20-day SMA as a support level. The MACD shows increasing bullish market momentum, so the bulls should easily take down the 50-day SMA.

    Image: ETH/USD daily

    ETH/USD daily chart 070521

    Looking at IntoTheBlock’s IOMAP, the 50-day SMA ($2,450) provides strong resistance. Previously, at this level, over 575,000 addresses had purchased almost 3 million ETH tokens.

    ETH/USD volume chart 070521

    Bitcoin and Ethereum Supply Dropping on Major Crypto Exchanges

    Recent Santiment data has shown that the amount of Ether (ETH) held by crypto exchanges is currently at its lowest level in more than two and a half years.

    Image: Santiment

    ETH/USD santiment chart 070521

    The crypto analytics firm noted that this drop is bullish for the second-largest cryptocurrency.

    “Dropping below 18% for the first time in 31 months lowers the risk of a future major sell-off.”

    Santiment also noted that Bitcoin is witnessing a similar situation, albeit over a shorter time frame.

    “Following Bitcoin’s mid-May dip, the supply of BTC sitting on exchanges has steadily fallen back down and locked away for safekeeping by HODLers (hold on for dear life). This is a good sign for bulls, as funds moving away from exchanges lowers the risk of major sell-offs.”

    Source: Santiment

    ETH/USD santiment chart 2 070521

    Santiment added that the amount of Ether in the hands of large investors recently reached the highest level in nearly four years.

    Source: Santiment

    ETH/USD santiment chart 3 070521

    It also noted that Ethereum’s address activity had exceeded Bitcoin’s last week for the first time as its price rebounded from levels last recorded in March.

    “For the first time in crypto history, ETH address activity is ABOVE BTC address activity, as prices have soared back above $2,100.”

    Source: Santiment

    ETH/USD santiment chart 4 070521

    The crypto analytics firm mentioned that the increase in Ethereum’s address activity had caused a noticeable rebound in the prices of altcoins.

    “Altcoins have enjoyed quite the major resurgence over the past 36 hours or so. Much of this can be attributed to ETH’s address activity pop that saw it surpass event BTC’s.

    Ethereum Price Is Expected To Reach These Levels

    The buyers currently have the market momentum required to take down the 50-day SMA. If they manage to do that, ETH should reach the $2,600 psychological level.