28 September 2021 | ZebPay Trade-Desk
The battle between the bears and bulls continues, which is probably why Ethereum (ETH) has been in a consolidating phase over the past few days, trading in a range-bound fashion. The overall pessimistic views in the marketplace have led to investors growing increasingly cautious, and many have chosen to book profits during the fall.
China’s crackdown significantly impacted ETH, which fell by 14%, almost immediately after the news came in. Volumes have shown good traction, as at current prices the asset does look fairly attractive. Institutional inflows into ETH have reduced, but given the looming uncertainty and volatility currently, this is like a short-term occurring.
ETH witnessed a sharp correction after touching the 4k mark and fell almost by 34% from $4027.9 to $2,656.9. The prices have taken support at $2,625 (61.8% Fibonacci Retracement level) and have shown signs of recovery. Technically, on the daily time frame, ETH has made a ‘Bullish Engulfing’ pattern and started to move up. The asset faced resistance of around $3,175 and yet again witnessed a sell-off over the weekend. However, it did not test the recent lows and reversed from $2,735. Currently, ETH is consolidating and trading in a range between $3,170 to $ 2,750. Hence, we conclude that to further rally, ETH needs to break and close above $3,175.
| Support 2 | Support 1 | Asset | Resistance 1 | Resistance 2 |
| $2,400 | $2,872 | ETH | $3,350 | $3,675 |
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