August’s monthly candle closed in the red. However, it was a month filled with volatility where the bulls dominated the market until the middle of the month and managed to record a high of $2031. At that point, bears intercepted and pushed the price towards $1420.
In any case, all eyes are now on September as we enter the month when the Merge is expected to take place.
The Daily Chart
In the daily timeframe, buyers appeared strong this week. They managed to reclaim the 100-day moving average line (in white) and then clear the descending line resistance (in yellow). However, the bearish structure is still valid since Ethereum failed to form a higher low and higher high.
The resistance zone in the range of $1720-$1750 (in red) is critical. A break and close above it would confirm the trend reversal. If that plays out, a rally towards $2000 becomes more probable. On the other hand, the support at $1,420 is expected to prevent considerable declines towards the downside.
Breaking one of these two levels would determine the future direction. Additionally, highs and lows must be carefully monitored.
Key Support Levels: $1420 & $1300
Key Resistance Levels: $1720 & $2000
Daily Moving Averages:
The ETH/BTC Chart
Against Bitcoin, the cryptocurrency is struggling with the descending resistance line (in yellow). After the bulls defended the horizontal support at 0.073 BTC ( in green), they also managed to push the price by 9%.
The recent bullish leg seems to have the necessary strength. This highlights the possibility of retesting the horizontal resistance at 0.082 BTC (in red). It’s important to keep an eye on how ETH performs as the Merge closes in.
Key Support Levels: 0.0.073 & 0.065 BTC
Key Resistance Levels: 0.082 & 0.088 BTC
Transaction Count (SMA 7)
Definition: The total number of successfully executed transactions
Contrary to the positive signs that can be seen in the price chart, on-chain activities are showing a different picture. The number of active addresses and transactions on the network has decreased sharply in the last month.
Price increases are often accompanied by increased activities on the network, as experienced in the July uptrend. Therefore, this divergence can be interpreted as a sign of potential worry.
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.
Credit: Source link