As BTC fell to $26000, Ethereum actively defended the support level of $1800. But will ETH bulls gain leverage in the face of intensified macro headwinds?ETH dropped below 50-EMA but was inspected by 100-EMA
As BTC fell to $26000, Ethereum actively defended the support level of $1800. But will ETH bulls gain leverage in the face of intensified macro headwinds?
- ETH dropped below 50-EMA but was inspected by 100-EMA.
- A positive CVD spot may bring a glimmer of hope to bulls.
Ethereum, the second largest digital asset based on market value, is better able to withstand the current strong macro headwind than Bitcoin. From a perspective, according to CoinMarketCap data, ETH's weekly loss as of the time of publication is approximately 5%.
During the same period, BTC depreciated by about 7%; Therefore, the king coin has suffered more blows than ETH - further strengthening the decoupling between ETH and BTC. But BNB outperforms these two assets on the weekly front line.
Despite the revisions, compared to last week's (May 7-14) 'greed' position, the cryptocurrency greed and fear index was' neutral 'at the time of publication, with a value of 48.
Will bulls continue to defend $1800?
The price trend is below the 50-EMA (moving average of the index) and the RSI hovers below the 50 level, so short-term downside space cannot be ruled out.
It is worth noting that if market sentiment deteriorates in the coming days/weeks, short-term holders may panic to sell their ETHs.
The first sign of weakness in the ETH market structure will be a breakthrough, with the daily closing price below $100-EMA1764 (yellow line). Such a decline may cause the ETH to drop to $1700. The second sign of weakness will be the closing price below $1700, which may devalue the ETH to $1500.
On the positive side, if the ETH is pushed above $50-EMA1845 (blue line), bulls may feel relieved. Such a move may ignite hopes of regaining the psychological price of $2000 and weaken any general bearish sentiment.
At the same time, the CMF (Chaijin Capital Flow) has hovered around zero after falling from the negative range - capital inflows have improved, but have fluctuated in the past few days. Similarly, the OBV remained flat, which means demand is fluctuating - indicating a possibility of short-term consolidation.
Positive aggregated CVD means
According to Coinalyze's data, tracking buyer/seller activity and overall sentiment with a consolidated CVD (Cumulative Volume Increment) spot is positive.
The indicator has been negative since May 3rd, but turned positive on May 12th after the price hit the support level of $1800. This indicates that the buyer has been responsible for the past two days.
In terms of liquidation, long positions worth $2.5 million in the past 24 hours were liquidated, while short positions were $1.9 million. This development depicts a mild bearish sentiment that may undermine the strong recovery of ETH.
Macro traders who focus on ETH/USDT want to focus on the US debt ceiling and the US retail sales data scheduled to be released on Tuesday (May 16), which will affect all USD/USDT linked assets/currency pairs.
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