Ethereum Technical Analysis: ETH’s Run Of 4 Straight Bullish Days Comes To A Halt

Daily Ethereum ETH Price Analysis

Last Updated July 23rd 2021
2 Min Read
  • Ethereum price faces resistance at the 20-day SMA.
  • MACD shows increasing bullish momentum
  • The Ethereum price has dropped by $1,000 between $2,850 to $1,800 from June 4 and June 25. As a result, ETH has flipped both the 20-day SMA and the parabolic SAR from bullish to bearish. However, ETH soon went up following a bullish rally.

    Ethereum Price Has A Bearish Day After Four Bullish Days

    Between June 26 and June 29, the Ethereum price has jumped from $1,800 to $2,165 gaining almost $365 in its overall valuation. During this jump, the buyers managed to flip both the MACD and the 200-day SMA from bearish to bullish. However, the 20-day SMA has prevented a further uptrend and ETH has dropped to $2,115.

    Image: ETH/USD daily

    ETH/USD daily chart 063021

    Looking at IntoTheBlock’s IOMAP, we can see that the Ethereum price faces strong resistance at $2,400. Previously, at this level, over 545,000 addresses had purchased almost 4.20 million ETH tokens.

    ETH/USD volume chart 063021

    Institutional Demand For Grayscale Ethereum Going Down

    Recent research by Glassnode has revealed that institutional demand remains low as Bitcoin continues to fight for support while mining selling pressure increases. The report stated that one of the main factors in the institutional narrative had been the one-way flow of crypto assets into Grayscale’s GBTC trust fund. The firm added that traders sought to arbitrage the high premium observed in 2020 and early 2021.

    On Twitter, Glassnode said:

    "#Bitcoin has held onto support this week, absorbing yet another capitulation, and likely sell-side pressure from miners."

    As per the report, since February, the GBTC product has reversed to trade at a persistent discount to net asset value (NAV). It dropped to the deepest discount of -21.23% in mid-May. This discount has continued to close up following the market selloff and is currently around -5%.

    Glassnode also observed outflows from two large Canadian BTC funds and a flattened net change in coin balances held on Coinbase, concluding:

    “Between observations of the GBTC premium, net outflows from the combined Purpose and QBTC ETFs, and a stagnant Coinbase balance, institutional demand appears to remain somewhat lackluster.”

    Another CoinShares report showed that Bitcoin outflows had slowed down over the past week. Total Bitcoin outflows across all funds had slowed to just $1.3 million, down from $89 million for the previous week. 

    Some funds, such as Grayscale, saw minor inflows of BTC, suggesting mixed sentiment for Bitcoin amongst investors, the report noted. The fund manager’s total AUM is currently $30 billion, of which 74% or $22.4 billion is in its Bitcoin trust product.

    Ethereum Price Is Expected To Reach These Levels

    The Ethereum price needs to break past the 20-day SMA to flip the parabolic SAR from negative to positive. Following that, the buyers will garner enough momentum to break past the $2,400 resistance barrier.