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Ethereum lovers should watch out for these levels in the weeks to come

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Ethereum lovers should watch out for these levels in the weeks to come

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

Data from Santiment showed a dramatic increase in transaction volumes for Ethereum in the past two days. Moreover, the number of addresses at a loss on the Ethereum network reached a new ATH, which was a particularly bearish development. Do such vast losses mean that a relief rally is just around the corner, or is more pain in stock for investors?

In other news, the Ethereum Merge was likely to arrive in the coming weeks, but can this positive news rescue the bulls?

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ETH- 12 Hour Chart

Source: ETH/USDT on TradingView

The $1800-$1950 area (cyan box) acted as an area of demand last June and July, and the price was able to rally from these lows to set new ATHs at $4800. Can the same feat be repeated?

It could, but there is a lot that needs to go the way of the bulls for such a scenario to unfold again. As things stand, fears of inflation and the tanking global stock indices have had a negative impact on the crypto market.

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The market structure of ETH appeared to flip bullish, for a few brief days in March, but the price fell back below the $3300 mark and, quickly thereafter, the $3000 mark as well. This development meant that the previous downward trend was not quite broken.

As things stand, the $2280 and $2500 levels are likely to be strong resistance levels for Ether in the weeks to come. The zone of demand just below $2000 could give a positive reaction in the next few days, and a bounce toward $2200 could occur.

Rationale

Source: ETH/USDT on TradingView

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Even as the prices formed lower lows, the RSI made higher lows (marked in white). This was a bullish divergence that could produce a bounce in price, alongside the confluence with the demand zone. However, the 33 mark on the RSI has been important in the past, and it would need to climb above in order to resemble the bounce in late January. In that instance, once the RSI climbed out of the oversold territory and retested 33, the price began to climb from $2400 to $3200.

The Awesome Oscillator was also well beneath the zero line to show bearish momentum was strong, and the OBV also saw a massive dip in recent days to highlight the strength of the sellers.

Conclusion

A divergence would not be enough for the trend to reverse, and this market was not yet ready to establish a bullish trend. Lower timeframe traders can look for shorting opportunities, while investors would need to wait patiently for an opportunity to buy the asset.

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Akashnath is a Chemical Engineering graduate deeply fascinated by Technical Analysis and the crypto markets and enjoys studying price movements and trying to find patterns.

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Binance Coin [BNB]: Don’t overlook these crucial indicators

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Binance Coin [BNB]: Don’t overlook these crucial indicators

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

As the dust seemingly settled in the altcoin market, Binance Coin’s (BNB) price took shape within a bearish rising wedge (yellow). The end of this tight phase could result in a sharp swing in either direction.

With the price finally breaching the basis line (green) of the Bollinger Bands (BB), the buyers affirmed the gradual increase in their influence. But, with slightly weak indications on its technicals, the buyers need to negate the selling pressure on high volumes.

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At press time, BNB was trading at $315.9, down by 2.97% in the last 24 hours. 

BNB Daily Chart

Source: TradingView, BNB/USDT

After bouncing back from the $268-support, BNB formed a rising wedge on its 4-hour chart. Now, there are two possibilities from this. Should the pattern function as a continuation of the previous downtrend, a further drawdown will be likely. A bearish outcome would expose the alt to a potential test of the Point of Control (POC, red) before any further pulldown.

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To affirm this outcome, bears would need to enforce a close below the lower trendline of the wedge. With the BB looking to curb its current volatility, the potential decline might enter a squeeze phase in the coming sessions.

On the other hand, there are chances for the buyers to step in at the $307-support. This trajectory may be possible due to the alt’s recent streak of higher troughs. An upwards breakout would position BNB toward the $357-level in the days to come. A close above $326 would boost the probability of this upswing.

Rationale

Source: TradingView, BNB/USDT

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The 4-hour RSI was denied a break above its half-line as it plunged lower towards the 44-zone. Furthermore, the -DI moved parallel with the +DI line and suggested that a bearish trend is still active.

Also, capital inflows took a hit while the CMF struggled to cross the zero-mark. However, any bounce-back from its current support range would confirm a bullish divergence.

Conclusion

Looking at its press time setup, BNB tilted slightly towards the selling market. The investors should watch out for a break outside of the current pattern to make any potential calls. Finally, keeping an eye on Bitcoin’s movement and the broader sentiment would be important to complement the aforementioned analysis.

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Uniswap: Assessing the prospects of ‘true’ recovery for UNI

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Uniswap: Assessing the prospects of ‘true’ recovery for UNI

The cryptocurrency market has been at its lowest since the beginning of May 2022. However, that is not the case for Uniswap. UNI hasn’t rallied or even projected any sort of momentum for almost a year now. 

A trip down Uniswap’s memory lane

Trading at $5.6 at press time, UNI seemed to be struggling to recover from the woes witnessed in May. In fact, it has already been placed under the critical support of $8.4. Tested multiple times in the past, this support level is essential for Uniswap if the token wishes to hike on the charts.

However, despite all the crashes and the dips, UNI did not see a single holder of the DeFi cryptocurrency leave the network. UNI HODLers remained where they were months ago.

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Curiously, the total number of UNI holders didn’t just stay constant. Over the last one month, the total number of UNI investors has spiked by almost 3k. The number of Uniswap holders stood at 290k, at the time of writing.

Furthermore, UNI holders are unfazed by the events of 9 May and are surprisingly still bullish on the asset. In the last 24 hours alone, about 1 million UNI amounting to a total of $5.6 million was bought by investors as the crypto “recovered” by a mere 3%.

Furthermore, one of the biggest concerns going forward is the asset’s correlation with Bitcoin. Sharing a correlation this high, Uniswap has placed its investors under the threat of bearishness should BTC ever drop again.

Trading at $29k at press time, BTC has the attention of every trader and investor now. Especially since a further decline would impact the entire market. However, a close above $30k could do the opposite trick.

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The last time all UNI investors were together in profits was back in May 2021 when UNI peaked at $48. This will be unlikely this time considering the ongoing bloodbath in the market. 

In fact, the network-wide supply of UNI has also been sitting in losses for five months now. This may discourage new investors from entering, even at lows of $5.6. However, given the current situation, Uniswap is better off without more bearishness over the next few months.

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Aaryamann is a freelance crypto journalist working with AMBCrypto. He is currently investing his time in the crypto-space. He has a keen interest in DeFi, the ever-expanding possibilities of blockchain technology, as well as the political impact they would have.

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Stellar: Answer the Q whether HODLing is still the way to go

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Stellar: Answer the Q whether HODLing is still the way to go

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

At the time of writing, Stellar (XLM) was sailing below the lower boundary of its Pitchfork after the latest bearish engulfing candlestick on its daily chart. The latest selling spree has set up a bearish structure for XLM.

Any close below the current pattern could spiral into further losses by paving a pathway towards the $0.12-zone. At press time, XLM was trading at $0.1283.

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XLM Daily Chart

Source: TradingView, XLM/USD

Since XLM flipped towards the south from the $0.4-zone, the bears found renewed pressure to pull the alt and test the $0.16-mark (previous support). After a liquidation streak, the recent bearish phase saw a drawdown from this mark after an over 45% weekly decline towards its 17-month low on 12 May.

With the current structure exhibiting bearishness, the bulls need to make extraordinary efforts to halt the ongoing selling momentum. For this, they still need to propel high buying volumes. The current bearish pennant setup could play spoilsport for recent buying endeavours.

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Any close below the pattern could lead to a near-term pullback towards the $0.12-baseline. Post which, the bulls would be keen to bridge the overextended gap between the 20 EMA (red) and the 50 EMA (cyan). In this case, a close above the Pitchfork would reignite the possibilities for any recovery. 

Rationale

Source: TradingView, XLM/USD

The RSI underlined a visible selling edge while compressing in the 36-41 range. The investors/traders must watch out for a break beyond the current bounds to enter either buy/sell calls.

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Over the last four days, the bearish CMF marked lower peaks on the daily timeframe. But, any bounce-back from the -0.1-mark would confirm the existence of a bullish divergence with the price.  

Conclusion

Looking at the prevailing bearish pattern coupled with weak buying volumes, sustaining a rally for the bulls would be relatively tougher. Any break below the pennant could lead to short-term losses or an extended tight phase before the buyers show up. 

Besides, investors/traders should factor in the broader market sentiment and on-chain developments to make a profitable move.

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With a background in financial analysis and reporting, Yash is a full-time journalist at AMBCrypto. He has a keen interest in blockchain technology, with a primary focus on technical analysis of cryptocurrencies.

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