ETH

Daily Chart Technical Analysis

Analyzing the Ethereum (ETH) price chart over the past 300 days, the overall price pattern has shown high volatility. The current price is $4,183,000, which aligns with the market trends of the past few weeks. Considering several key support and resistance levels, the current price is moving near the resistance level, suggesting the possibility of further declines.

First, the 50-day Exponential Moving Average (EMA) is positioned above the 200-day EMA, which is interpreted as a short-term bullish signal; however, considering the recent price retracement, this may be a somewhat unreliable signal. Second, the Relative Strength Index (RSI) is at 67, indicating it has entered somewhat overbought territory. This suggests that a correction may be forthcoming. Third, the Moving Average Convergence Divergence (MACD) indicator is showing a downward trend, reinforcing a sell signal.

Additionally, the Bollinger Bands indicate that the current price is near the upper band, suggesting that the price is overheated. Moreover, looking at the candlestick patterns, the recent formation of a ‘descending triangle’ has been confirmed. This indicates that selling pressure is increasing, and a correction may be inevitable. Therefore, considering these technical indicators and price patterns, a short-term sell position is recommended.

External Factor Analysis

The current Ethereum market is influenced by several external factors related to the recent overall decline in the cryptocurrency market. Since the COVID-19 pandemic, the pace of economic recovery in various countries has slowed, leading to increased instability in investment sentiment towards cryptocurrencies compared to before. In particular, concerns about the Federal Reserve’s interest rate hike policy continue to persist, which significantly impacts the entire financial market.

Moreover, changes in regulatory authorities’ policies can have a significant impact on the cryptocurrency market. For example, recently, many countries around the world have been tightening regulations on cryptocurrencies, which can foster uncertainty among investors. As public awareness of blockchain technology improves, it is expected that more investors will enter the market than before, but at the same time, there are warnings about risks that could guarantee losses.

Finally, technological advancements, particularly innovations in the Ethereum ecosystem (smart contracts, DeFi, etc.), and the emergence of competing cryptocurrencies are also important factors that change the market’s pace. Considering these factors comprehensively, it seems advisable to consider a sell position during the current period.