Blockchain

Blockchain analytics site Lookonchain flagged recent transactions of two on-chain addresses allegedly owned by the Polygon Foundation. The platform reported that one of these wallet addresses had transferred large amounts of MATIC – the Polygon network’s native token – to Binance in the past two days.

According to Lookonchain, the two addresses, tagged as  “Polygon Foundation: 0x8d36” and “Polygon Foundation: 0xf957,” have collectively transferred nearly $6 million worth of MATIC to Binance over the past month, with more than half of the amount deposited onto the exchange in the last two days.

Polygon Labs Founder Denies Dumping MATIC Tokens

In an X post, Polygon Labs founder Sandeep Nailwal swiftly refuted the suggestions that the Polygon Foundation may be dumping MATIC tokens on Binance. The founder asserted it was “another” case of incorrectly labeling wallet addresses.

Nailwal emphasized the need to exercise caution before publishing claims of this nature, as they can create FUD (fear, uncertainty, and doubt) in the crypto community.

For context, FUD refers to the spread of negative – and sometimes false – information about a cryptocurrency or the general market to create fear and doubt among investors and potentially influence prices. 

It is worth mentioning that the founder’s claims align with the words of Polygon Labs CEO Marc Boiron, who was the first to raise this issue of wallet mislabeling. Boiron had also insisted that the Polygon Foundation controls none of the addresses. 

In response to Boiron, Lookonchain stated that the crypto intelligence platform Nansen conducted the address labeling.

Wallet Addresses Are Strongly Linked To Polygon Foundation, Nansen Reiterates

Nansen responded to the situation, explaining why the two wallets were linked to the Polygon Foundation. Meanwhile, the analytics firm put in a robust defense for its address labeling system, claiming that every label undergoes a “rigorous documentation process.”

Going further in its explanation, Nansen cited some instances where prominent figures at Polygon Labs interacted with the “Polygon Foundation: 0x8d36” address. In one example, Polygon’s head of growth, Sanket Shah, reportedly sent ETH to the address for “gas purposes.”

For the second address, “Polygon Foundation: 0xf957”, Nansen said its counterparties consist of the first address and other entities closely associated with Polygon, including the head of investments, Shreyansh Singh.

Nansen concluded that:

The evidence for both of these addresses shows a very strong link to various individuals and entities of the Polygon Foundation, and that’s why we labeled these addresses as part of the Polygon Foundation.

Despite this, Nansen claims to have removed the labels “as a gesture of goodwill” since the Polygon Labs CEO openly denied links to the two addresses. 

Bitcoin (BTC) has officially dipped below the $26,000 level and is currently trading at $25,800, which coincides with its 200-week Exponential Moving Average (EMA). This EMA has served as a crucial support level, as it played a role in Bitcoin’s rebound on June 15, leading to its yearly high of $31,800.

Bitcoin Consolidation Conundrum

The current situation appears to be slightly different for BTC. On the one hand, Bitcoin has been experiencing an extended consolidation phase just above this significant level for over seven days. 

More concerning is that the cryptocurrency has been forming lower lows during this consolidation, indicating a downward pressure trend.

Moreover, during Bitcoin’s rally on June 15, it had the advantage of holding its key 200-day Moving Average (MA), which has been influential in determining its prospects and upward gains. However, this same moving average presents a potential hurdle for BTC, acting as a resistance at the $27,100 level, potentially impeding a recovery rebound.

As highlighted by crypto market analyst Michael Van De Poppe, the crucial question is whether Bitcoin will maintain its position above the 200-week EMA.

Abnormally Low Trading Volume In Spot Market Raises Concerns

On this matter, CryptoQuant author and crypto analyst Maartunn has identified an intriguing phenomenon in the BTC market that may shed light on the cryptocurrency’s recent stagnant state and low volatility. 

Maartunn has observed an abnormal pattern: the trading volume in the Bitcoin-spot market has reached its lowest level since 2017. This finding has significant implications for understanding the dynamics of BTC’s price and market behavior.

The Bitcoin spot market plays a crucial role in the cryptocurrency ecosystem. It is where investors and traders buy and sell actual Bitcoins for immediate delivery instead of derivative products or futures contracts. 

Spot market trading volume reflects the level of participant activity and liquidity in the market, providing insights into the supply and demand dynamics of Bitcoin.

The unusually low trading volume in the BTC-spot market suggests decreased market activity and engagement among traders. 

This lack of participation can contribute to stagnation and low volatility in BTC’s price. With fewer buyers and sellers entering the market, there may be limited price movement and a reduced likelihood of significant price swings.

Such conditions can have implications for investors and traders. Low volatility may discourage short-term speculative trading strategies as the potential for quick profits diminishes. 

Additionally, it may indicate a lack of market confidence or uncertainty among participants, leading to a cautious approach and potential hesitation in making significant investment decisions.

Monumental First Half Of 2024 For BTC?

According to crypto analyst Miles Deutscher, the first half of 2024 is shaping to be a monumental period for the cryptocurrency market. Several key events and deadlines are anticipated during this timeframe, which could profoundly impact the industry and its major players.

Starting in January through March, the spotlight will be on Bitcoin as the final deadline for approving the Bitcoin spot exchange-traded funds (ETFs) approach. 

The crypto community has long awaited the introduction of a Bitcoin ETF as it could potentially open the doors for broader institutional participation and investment in the digital asset.

In May, another highly anticipated event is the Bitcoin halving. This recurring event, which occurs approximately every four years, reduces the rate at which new Bitcoins are generated. 

In June, the focus shifted to the Federal Reserve (FED) and its potential decision to cut interest rates. While market pricing currently suggests the likelihood of a rate cut, such a move could have implications for the broader financial landscape, including the cryptocurrency market. 

Featured image from iStock, chart from TradingView.com

The pattern of an on-chain metric may suggest that Bitcoin could see more downside ahead before a rebound is found.

Bitcoin STH SOPR Hasn’t Hit The Bottom Zone Yet

An analyst in a CryptoQuant Quicktake post explained that the BTC short-term holders are selling at a loss. The relevant indicator here is the “Spent Output Profit Ratio (SOPR),” which tells us whether the Bitcoin holders are selling their coins at a profit or a loss.

When the value of this indicator is greater than 1, it means that the average holder in the market is moving their coins at a profit. On the other hand, values below this threshold imply that loss-taking is the dominant force in the sector.

The SOPR being exactly equal to one naturally suggests that the market is just breaking even on its selling right now as the total amount of realized profits cancel out the losses.

The SOPR can also be defined for just a part of the market. In the context of the current discussion, the short-term holder (STH) group is of interest. These investors have been holding onto their coins since less than 155 days ago.

Now, here is a chart that shows the trend in the 30-day moving average (MA) Bitcoin SOPR over the past several years:

As displayed in the above graph, the 30-day MA Bitcoin STH SOPR had been above one for most of the year 2023, but following the recent struggle in the asset’s price, the indicator has dipped below this mark.

Historically, the one indicator level has been a line of support for the cryptocurrency, as it has often found rebounds. For example, Bitcoin found bottoms at this mark during the slumps in both March and June.

With the recent drawdown, though, this support level has been breached, as the STHs are now selling their coins at a loss. Usually, whenever the metric dips below this level, it doesn’t come back above it quickly, as the line begins to act as resistance instead.

The Bitcoin STH SOPR has historically been able to find rebounds in the green box that the quant has highlighted in the chart. The indicator is still a notable distance above this bottoming zone.

If the BTC price will only find its rebound when the indicator dips inside this zone, then more decline could be ahead for the asset so that the STHs are pushed into capitulating at a deeper degree.

BTC Price In The Short Term

Bitcoin has continued its sideways struggle recently as the cryptocurrency has been unable to find a break in either direction. The asset’s price is floating around the $25,700 mark.

A major Korean finance powerhouse, Mirae Asset Securities, has joined hands with a popular blockchain network, Polygon. This partnership has ignited curiosity about how it might impact the price of Polygon’s native cryptocurrency, MATIC. 

Top Financial Organizations Join Forces With Polygon To Create Tokenized Securities Network

In the early hours of today, September 7, 2023, South Korea’s largest financial group, Mirae Asset Securities, with over $500 Billion under manager, announced they are connecting to the Polygon network. According to the report, the collaboration aims to increase the adoption of Web3 technologies and develop a tokenized securities community.

In a press release, the asset manager said that Polygon Labs will be the chief technical consultant in the Token Working Group of Mirae Asset Securities. The asset manager said the group would work “efficiently” to create infrastructure to issue, exchange, and distribute token-based securities. 

According to the Head of the digital assets division at Mirae Asset Securities, Ahn In-sung:

Polygon Labs is a leading global blockchain technology development company that is innovating throughout all aspects of Web3. Through technical collaboration with Polygon Labs, Mirae Asset Securities aims to establish global leadership in the field of tokenized securities.

Notably, several financial companies are included in this collaboration. These include Linger Studio and Coin Plug, Hana Financial, and SK Telecom’s security token consortium, Next Finance Initiative (NFI).

According to the report, Big finance names like Franklin Templeton and Hamilton Lane, a big investment company with over $823.9 billion in assets, are already using Polygon for tokenization projects. 

Will Polygon’s Partnership With Mirae Asset Securities Affect MATIC’s Price?

The Partnership between Polygon Labs and Mirae Asset Securities to advance tokenization will benefit Web3 adoption within the ecosystem and could boost MATIC’s price.

On September 5, Polygon 2.0 was announced with Zero Knowledge L2 chains, three Governance pillars, and the Polygon Business Model part of the new upgrades. This upgrade will likely attract investors like Mirae Asset Securities to rely on Polygon for different purposes. 

From September 1-3, MATIC traded in the $0.54 range but has increased to $0.56 today, September 7. It implies that the partnership is likely driving the slight gains noticed in the last 24 hours and might signal an uptrend ahead for MATIC. 

MATIC has formed six consecutive green candles on the daily chart, suggesting buyers defend current levels. Also, it found critical support at $0.55, with its next price moves likely to send it to the $0.57 resistance level. 

If the buyers persist, MATIC can break above the $0.57 resistance level and move into an uptrend. The Relative Strength Index (RSI) indicator, with a value of 41.57, shows a neutral sentiment among investors. However, the Moving Average Convergence/Divergence (MACD) displays a buy signal confirmed by the green Histogram bars. 

MATIC will likely record a positive price action in the coming days based on a more positive investor sentiment and valuable partnerships.

XRP has been navigating turbulent waters in recent months. After reaching a high of $0.936, the coin took a nosedive to hit the $0.5 mark, leaving investors in a state of uncertainty. 

With a current price of $0.502574 according to CoinGecko, XRP is experiencing a minor 0.3% decline in the last 24 hours, contributing to a seven-day slump of 4.8%. However, a recent price report has sparked hope among XRP enthusiasts, suggesting a potential rebound that could change the game for this digital asset.

The report indicates that a potential rebound from the current bottom could serve as a catalyst for bullish momentum. If the crypto manages to break above the critical resistance level at $0.556, it is expected to ignite a surge in buying pressure, possibly driving the price up to $0.665. This price movement could rejuvenate investor sentiment and restore confidence in XRP as a viable investment option.

Caution In A Downtrend For XRP Holders

Despite the optimistic outlook, the report also offers a word of caution. In established downtrends, assets tend to undergo short consolidations to recover from exhausted bearish momentum before continuing their downward trajectory. 

For the Ripple native currency, this means that it may breach the $0.486 support level, potentially leading to a 13% drop to reach $0.42. Investors should remain vigilant and consider both the potential for a rebound and the risks associated with a further decline.

Bybit Launches XRP/EUR Trading Pair

In the midst of these price fluctuations, major cryptocurrency exchange Bybit has introduced a new trading pair that has caught the attention of XRP enthusiasts.

The exchange recently launched the XRP/EUR trading pair, expanding its offerings for traders seeking exposure to the digital currency. This move comes as a welcome addition for users, providing them with the ability to buy and sell the crypto using Euros.

Bill Morgan, a dedicated XRP supporter, shared a screenshot of Bybit’s blog post announcing the listing, highlighting the significance of this development for the crypto community.

Bybit has introduced 8 trading pairs with EUR including an XRP/EUR pair pic.twitter.com/TgvezUheGC

— bill morgan (@Belisarius2020) September 6, 2023

Bybit’s announcement states that the new trading pair aims to enhance users’ trading experiences on the platform, offering greater accessibility and convenience for those looking to trade XRP with European currency.

As the crypto continues to grapple with market volatility and uncertainty, the introduction of the XRP/EUR trading pair on a prominent exchange like Bybit provides a glimmer of hope for XRP enthusiasts.

The cryptocurrency’s ability to rebound and reclaim lost ground remains to be seen, but one thing is certain: the XRP community remains resilient and optimistic in the face of adversity.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Inside Bitcoins

Chainlink (LINK) has been a standout in the crypto market recently, registering an 11% increase over the past six days, even as the broader crypto market sentiment remains subdued.

Will Uptober Start Early For Chainlink?

A significant factor that might be driving this price action is the behavior of LINK’s major holders. On-Chain analysis firm, Santiment, highlighted this in a recent tweet, stating: “Chainlink’s key shark tier that holds between 10K-100K LINK has been on an accumulation spree.”

Diving deeper into the data, there are now 3,127 wallets holding between 10,000-100,000 LINK, marking the highest level since December 3, 2022. These wallets have added a staggering $9.6 million worth of LINK in just three days. Since September 3rd, there’s been a 3.2% rise in the number of wallets in this category, with 98 new wallets emerging. This group has accumulated 0.154% of the entire LINK supply in the same period.

However, Chainlink’s journey hasn’t been entirely smooth. The token has been ensnared in a sideways range for an exhausting 485 days, which is over 15 months. The LINK/BTC pair has been on a downward trajectory for more than three years.

Chainlink’s much-anticipated release of the Cross-Chain Interoperability Protocol (CCIP) was met with significant hype. Yet, despite its potential to revolutionize cross-chain communication, its release didn’t provide the expected boost to LINK’s price.

Also the news that a tokenization experiment by interbank messaging system Swift and Chainlink successfully transferred value across multiple blockchains could not move price substantially. In June Chainlink and Swift announced that they would be collaborating with dozens of financial institutions such as BNP Paribas, BNY Mellon, The Depository Trust & Clearing Corporation and Lloyds Banking Group and others.

However, the upcoming Chainlink’s SmartCon in October from October 2nd to 3rd might be the catalyst the token needs. Rumors are rife about a potential major announcement between Swift and Chainlink Labs, which could connect web3 infrastructure to the banks involved in previous tests.

If history is any indication, Chainlink could experience a surge in price leading up to the event, driven by the euphoria and speculation. “Uptober” could come early for the Chainlink price.

LINK Technical Analysis

The recent 11% surge in LINK’s price suggests that the market might already be reacting to the upcoming hype. However, the 4-hour chart indicates a rejection at the 23.6% Fibonacci retracement level at $6.37, which aligns closely with the 200 EMA at $6.40. For LINK to sustain its upward trajectory, it’s imperative to breach this level, with the next significant target being the 50% Fibonacci retracement level at $7.08.

The 1-week chart paints a picture of LINK’s prolonged downtrend. The recent hold above the 23.6% Fibonacci retracement level at $5.92 is a positive sign for the bulls, potentially paving the way for another try on the upper trendline of the downtrend channel.

However, several difficult challenges lie ahead. The 50% Fibonacci retracement level at $7.20 is the first major resistance. If LINK can push past this, a breakout from the 15-month downtrend channel becomes possible. For this to happen, Chainlink would need to break above the $8.30-$8.40 area as it currently stands, and would then encounter the 78.6% Fibonacci retracement level at $8.58. Large selling pressure can be expected at this point.

Should LINK falter at this juncture, a return to the downtrend channel is likely. Conversely, if the $8.58 mark is surpassed, it would signal a significant win for the bulls, potentially setting LINK on a path to challenge its 15-month high at $9.61.

Popular meme coin PEPE has recently come under the spotlight due to significant whale activity that has left many investors concerned about its future. Large holders of PEPE tokens have been selling their holdings at a loss, leading to increased market uncertainty. 

A recent report notes the meme coin’s price movements are strongly influenced by its presence in the social sector. However, over the last week, social activity surrounding PEPE has taken a notable downturn, with social engagements falling by 28% and social mentions decreasing by 18%.

Whale Exodus: Massive PEPE Transfers Raise Eyebrows

Lookonchain, a blockchain analysis platform, shed light on a puzzling development as it uncovered that three wallets, potentially controlled by the same individual, had transferred a staggering 1.5 trillion PEPE tokens to the popular cryptocurrency exchange, Binance. 

An hour ago, 3 wallets (probably the same person) deposited 1.5T $PEPE ($1.2M) into #Binance at a loss of $242K.

These 3 wallets withdrew 1.5T $PEPE($1.45M at the time) from #OKX after the Pepe team dumped 16T $PEPE on August 24. pic.twitter.com/StKCuGMGFZ

— Lookonchain (@lookonchain) September 6, 2023

At current exchange rates, these tokens are valued at approximately $1.2 million. What raises eyebrows is the fact that these wallets sold their tokens at a price lower than when they initially acquired them, resulting in a collective loss of $242,000.

This mass transfer followed an unexpected 16 trillion PEPE transaction on August 24, where the tokens were worth a staggering $1.45 million.

Official Response: ‘Ex-Team Members’ Accused Of Theft

According to a separate report, the team behind PEPE issued a statement alleging that “three ex-team members” had accessed the project’s multisig wallet without the consent of others and absconded with a substantial 16 trillion PEPE tokens.

This revelation sent shockwaves through the community and further fueled the uncertainty surrounding the meme coin.

While the recent decline in social activity and the questionable whale transactions have cast a shadow over PEPE’s future, an intriguing aspect emerges from the data. Despite the reduced social engagement, the weighted sentiment around the memecoin has continued to grow. 

This suggests that, at the time of writing, there are more positive comments and sentiments surrounding PEPE than negative ones, potentially indicating resilience within the community.

As of the most recent data available, PEPE is trading at $0.000000801962 according to CoinGecko, with a modest 0.5% gain in the last 24 hours. However, over the past seven days, it has experienced a 6.5% decline in value. 

Investors and enthusiasts are now closely monitoring the situation, hoping for clarity and stability to return to the PEPE ecosystem. The meme coin’s future hangs in uncertainty, as the crypto community watches for further developments and the resolution of the alleged theft involving the 16 trillion PEPE tokens.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Box Mining

In its new monthly report titled “The Bitcoin Monthly: Bitcoin Battles Resistance Around Its On-Chain Mean”, Ark Invest has provided an exhaustive analysis of the current market landscape. The report categorizes its findings into bullish, neutral, and bearish perspectives, providing a holistic view of Bitcoin’s current and potential future stance.

Bullish Arguments For Bitcoin

Grayscale Spot ETF and GBTC’s Discount To NAV: On August 29, a pivotal decision was made by a US Federal Appeals Court. They ruled that the U.S. Securities and Exchange Commission (SEC) must revisit and reconsider its earlier rejection of the Grayscale Bitcoin Trust’s (GBTC) application to transition into a spot ETF. This legal development saw GBTC’s discount to NAV shift from -24% to -18% on the same day, indicating heightened market optimism. By the end of August, GBTC was at a discount-to-NAV of -20.6%.

Bitcoin’s General Cost Basis Recovery: Bitcoin’s realized capitalization, which encompasses both its primary (miners) and secondary (investors) markets, is a measure of the aggregate cost basis of BTC. Between Q4 2022 and Q1 2023, the realized cap drawdown stood at -19%, marking its steepest since 2012. This drawdown serves as a barometer for capital outflows from the network.

Ark’s analysis suggests that the deeper the drawdown, the higher the likelihood of Bitcoin holders exiting the market, potentially setting the stage for a more robust bull market. The realized cap has improved from its all-time high in 2021, moving from a 19% low post the FTX collapse in November 2022 to 15.6%, indicating capital inflows over the past 8 months.

Futures Open Interest Collapse: August 17 witnessed a rapid liquidation of Bitcoin futures by 21.7%, the swiftest since December 2021. Ark Invest interprets this price correction as a “cathartic sentiment correction.”

Neutral Arguments

Bitcoin Price and the 200-Week Moving Average: August was a challenging month for Bitcoin as its price dipped by 5.4%, settling below its 200-week moving average at $27,580. This was the first instance since June 2023. However, Ark Invest posits that Bitcoin should find substantial downside support at its realized price of $20,300.

Bitcoin’s On-Chain Mean Resistance: The “on-chain mean,” also termed as the “active-investor price” or “true market mean,” reached $29,608 in August, establishing a potential significant resistance for BTC. This metric, a collaborative effort between ARK Invest and Glassnode, calculated by dividing investors’ cost basis by the number of active coins. These coins are determined based on the aggregate time they’ve remained dormant relative to the total supply.

Stablecoins Market Cap and Liquidity: Stablecoins, often viewed as a liquidity barometer for the market, have seen their 90-day supply drop over 20% from $162 billion in March 2022 to $120 billion currently, signaling a decline in onchain liquidity. However, net inflows during the same timeframe hint at a building bullish market momentum.

Bearish Arguments For BTC (All Macro)

Real GDP vs. Real GDI Growth Rates: A record divergence has been observed between the YoY percent changes in real Gross Domestic Product (GDP) and real Gross Domestic Income (GDI). Historically, GDP and GDI should be on par, as income earned should equate to the value of goods and services produced. Former Federal Reserve economist, Jeremy Nalewaik, has posited that GDI might be a more accurate indicator than GDP.

Real Federal Funds Policy Rate vs. Natural Rate of Interest: For the first time since 2009, the Real Federal Funds Policy Rate has surpassed the Natural Rate of Interest, indicating a shift towards restrictive monetary policy. This theoretical rate, as conceptualized by New York Federal Reserve President, John Williams, is the rate where the economy neither expands nor contracts. With monetary policy’s impact on the economy being long and variable, lending and borrowing are expected to face increased downward pressure.

Government’s Employment Revision: Employment, a lagging indicator, has been pivotal in the Federal Reserve’s rate decisions. Despite the labor disruptions caused by the COVID-19 pandemic expected to have been resolved by now, the government has revised nonfarm payroll statistics downward for six consecutive months. This suggests a weaker labor market than initially reported. The last instance of such a trend, outside of a recession, was in 2007, right before the Great Financial Crisis.

In summary, Ark Invest’s report presents three bullish, four neutral, and three bearish arguments on Bitcoin and the broader market, emphasizing that the market could be at a crucial turning point. At press time, BTC traded at $25,789.

Ripple’s token price is holding the $0.485 support against the US Dollar. XRP price could start a recovery wave if it clears $0.510 and $0.525.

Ripple’s token price is struggling to recover above $0.510 and $0.525 against the US dollar.
The price is now trading below $0.520 and the 100 simple moving average (4 hours).
There is a major bearish trend line in place with resistance near $0.5020 on the 4-hour chart of the XRP/USD pair (data source from Kraken).
The pair might start another decline if it stays below $0.525 in the short term.

Ripple’s Token Price Eyes Recovery

In the past few days, Ripple’s XRP saw a steady decline from the $0.550 resistance against the US Dollar. The price declined below the $0.532 and $0.525 support levels.

It even spiked below the $0.500 support. A low is formed near $0.4863 and the price is now attempting a recovery wave, like Bitcoin and Ethereum. It is now trading near the 23.6% Fib retracement level of the recent decline from the $0.5490 swing high to the $0.4863 low.

XRP is now trading below $0.520 and the 100 simple moving average (4 hours). It is also trading near a major bearish trend line in place with resistance near $0.5020 on the 4-hour chart.

Initial resistance on the upside is near the $0.502 zone and the trend line. The next major resistance is near the $0.518 level or the 50% Fib retracement level of the recent decline from the $0.5490 swing high to the $0.4863 low.

Source: XRPUSD on TradingView.com

The main resistance is forming near $0.525. A successful break above the $0.525 resistance level might send the price toward the $0.532 resistance. Any more gains might call for a test of the $0.550 resistance.

Another Drop in XRP?

If ripple fails to clear the $0.525 resistance zone, it could start another decline. Initial support on the downside is near the $0.490 zone.

The next major support is at $0.485. If there is a downside break and a close below the $0.485 level, XRP’s price could extend losses. In the stated case, the price could retest the $0.450 support zone.

Technical Indicators

4-Hours MACD – The MACD for XRP/USD is now losing pace in the bearish zone.

4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.

Major Support Levels – $0.490, $0.485, and $0.450.

Major Resistance Levels – $0.518, $0.520, and $0.550.

Ethereum price is eyeing an upside break above $1,650 against the US Dollar. ETH must stay above $1,600 to start a fresh increase in the near term.

Ethereum is slowly moving higher from the $1,620 support zone.
The price is trading above $1,632 and the 100-hourly Simple Moving Average.
There is a connecting bullish trend line forming with support near $1,622 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a steady increase if there is a close above the $1,650 resistance.

Ethereum Price Eyes Fresh Increase

Ethereum’s price saw a couple of swing moves below the $1,650 resistance zone. ETH even spiked toward $1,665 but the bears remained active. There was a fresh decline, and the price retested the $1,600 support zone.

It is again moving higher above $1,620, like Bitcoin. Ether is now trading above $1,632 and the 100-hourly Simple Moving Average. Besides, there is a connecting bullish trend line forming with support near $1,622 on the hourly chart of ETH/USD.

On the upside, the price might face resistance near the $1,645 level. It is close to the 50% Fib retracement level of the recent drop from the $1,668 swing high to the $1,624 low.

The next resistance is near the $1,650 level or the 61.8% Fib retracement level of the recent drop from the $1,668 swing high to the $1,624 low, above which the price could rise toward the $1,665 level. The next major hurdle is near the $1,700 level.

Source: ETHUSD on TradingView.com

A close above the $1,700 level might push Ethereum further higher. The next resistance might be near $1,750. Any more gains might send the price toward the $1,800 resistance.

Another Decline in ETH?

If Ethereum fails to clear the $1,650 resistance, it could start another decline. Initial support on the downside is near the $1,630 level and the 100-hourly Simple Moving Average.

The first key support is close to $1,620 and the trend line. The next key support is $1,600. A downside break below $1,600 might put bears in control. The next major support is near the $1,580 level. If there is a downside break below $1,580, the price could revisit the key $1,540 support level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $1,600

Major Resistance Level – $1,650