Ethereum bulls win confidence in early 2023, what's next?

Ethereum bulls win confidence in early 2023, what's next?

The price of Ethereum has been in a very tight range in the past few weeks when the markets headed for the New Year's holidays. However, a crucial step could arise, since the cryptocurrency is now in a critical area.

technical analysis

from: Edris

the daily type:

The price recently tested a significant level of resistance on the daily chart, where the $ 1250 zone and the sliding 50-day average flow together.

While the market still has to break through this fundamental level, a potential interest bull-outbreak would pave the way for an increase in the direction of the sliding 200-day average by a psychologically significant price of $ 1400. A valid outbreak from the 200-day-MA mentioned would probably lead to a short-term rally that could drive the price of ETH towards $ 1800.

If the price is rejected on the other hand from the $ 1250 brand and the sliding 50-day average, a rapid decline in the last exit of the householder, namely the $ 1000 support brand, would be more likely.

Tradingview

The 4-hour diagram:

If you look at the 4-hour time frame, the latest consolidation pattern has become clearer, since the price within a symmetrical triangle that has formed below the $ 1250 brand has jumped up. A valid outbreak from both sides of the pattern could lead to a further continuation in the direction of the original outbreak.

The resistance zone of $ 1350 would be the probable goal for an interest bullic outbreak, while a break under the pattern could possibly lead to a decline towards the support brand of $ 1100.

The RSI indicator can also provide helpful insights, since the momentum approaches the overbought area and soon a potential declining divergence could form, which signals a high probability for a declining reversal. All in all, the short-term future of the market still hangs in the floating, but an outbreak or a cancellation of the $ 1250 mark could shape the short to medium-term price-rendering, as liquidity will soon return to the markets after the holidays.

Tradingview

mood analysis

of: edris

Ethereum-taker-purchase sales ratio

The price of Ethereum is still hesitating to fall and create a new lower low, and the mood on the appointment markets underlines one of the reasons for this relative strength.

This diagram shows the sliding 100-day average of the buyer-purchase sales ratio , a key figure that is mainly used to assess the atmosphere on the futures market, since it shows whether the bulls or bears deal with their orders aggressively. Values ​​over 1 show an interest bullish atmosphere, and vice versa values ​​under 1 towards the dominance of the bears. Movements above or below this threshold are also significant, since the decline in the metric under 1 usually signals a crash at short notice.

This key figure has been over 1 in the past few months, which indicates the resistance of the bulls on the appointment market, since their orders create sufficient demand to prevent the price from falling below the $ 1000 mark. If this behavior continues, even higher courses can be expected at short notice, since the course apparently forms a basis, the key figure falls under 1, a further continuation of the bear market would be very likely.

Cryptoquant

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