The bears have completely dominated the market since the beginning of April. The $1,000 support has prevented Ethereum from further correction over the past seven days. The question is, is a rally possible in the short term or not?
The descending line (in yellow) is with the long RSI 14D indicator. This line has acted as resistance most of the time and has not been broken so far – except once in March 2022. Since the beginning of April, when the index again fell below the mentioned line, the market has experienced a continuous bearish phase. ,
Currently, this indicator is struggling with a descending line (in red). If there is an upside break, it could even halt bearish momentum in the near term. If so, a price movement towards the horizontal resistance at $1,700 would be a likely outcome. Moreover, if the bulls manage to push the price above $1700, a trend reversal will be confirmed.
Key Support Levels: $1000 and $900
Major Resistance Levels: $1300 and $1500
Against BTC, the descending line (in red) has broken up in the RSI 14D indicator, and the index is moving towards the baseline after a pullback. If the RSI can gain momentum above its baseline, it can be expected that Ethereum will outperform Bitcoin in the coming days. An important resistance level on this chart is 0.06 BTC.
Exchange Reserve – Derivatives Exchange
definition: The total number of coins placed on the exchanges.
As the prices continue to rise, this indicates higher selling pressure. For derivatives exchanges, since coins can be used to open both long/short, an increase in the reserve value indicates potentially higher volatility.
Supply in the derivatives market has been increasing since April. It is often associated with increased volatility as these funds are used to open both long and short positions.
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Cryptocurrency charts by TradingView.