Cryptocurrencies Market Update ➡️ Solid ECN

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XRPUSD, technical analysis

The XRPUSD pair continues to trade within a wide descending channel. Last week, against the background of the collapse of the UST stablecoin and the LUNA token, the price reached the lowest values since January 2021 in the area of 0.329.

Currently, some of the losses have been recouped, but the potential for an upward correction is seen as limited by the resistance zone 0.5155-0.4883 (the middle line of the Bollinger Bands, Murray [5/8]). In case of its breakout, a further increase in quotations will be possible to the levels of 0.5859 (Murray [6/8]) and 0.6836 (Murray [7/8]), however, this option of price movement seems less likely, since the general downward trend persists, which is confirmed by the downward reversal of the Bollinger Bands and the increase in the MACD histogram in the negative zone. The key area for the "bears" remains 0.3906-0.3670 (Murray [4/8], Fibo retracement of 0.0%). Consolidation of the price below it will give the prospect of further decline to the levels of 0.2930 (Murray [3/8]) and 0.1953 (Murray [2/8], the lower boundary of the descending channel).

Resistance levels: 0.5155, 0.6835, 0.7812 | Support levels: 0.3670, 0.2930, 0.1953

 

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Last week, the price reached the year's lows around 0.3825, then recovered part of the position, but now it is falling again. The cryptocurrency sector is under pressure from two main factors: the tightening of monetary policy in the United States and the fall of the UST and LUNA currencies. Yesterday, the head of the US Federal Reserve, Jerome Powell, confirmed officials' determination to raise rates until inflation reaches the target of 2.0%. It means that the strengthening of the US dollar against alternative assets will continue. The collapse of the algorithmic stablecoin UST and its associated LUNA token has also eroded investor confidence in digital currencies, causing sell-offs across the sector. To remedy the situation, the developers of the Terra blockchain proposed to fork, create a new blockchain and additionally distribute 1B tokens among interested participants but experts believe that these plans are doomed to failure.

As for the ADA token itself, its position can be supported by the Vasil hard fork scheduled for June. According to Cardano founder Charles Hoskinson, the fork should lead to a significant increase in network performance due to the launch of the data pipeline function. It will optimize the network for the needs of the growing volume of applications in the DeFi market.

The price is testing the level of 0.4882 (Murrey [1/8]), which breakdown allows a decline to 0.3906 (Murrey [0/8]), 0.2929 (Murrey [–1/8]). The consolidation above the middle line of Bollinger bands and 0.6835 (Murrey [3/8]) allows growth to 0.7812 (Murrey [4/8]) and 0.8789 (Murrey [5/8]). This movement variant seems less likely since the indicators point to the continuation of the downward trend: the Bollinger bands and Stochastic are directed downwards, and the MACD histogram is stable in the negative zone.

Resistance levels: 0.6835, 0.7812, 0.8789 | Support levels: 0.4882, 0.3906, 0.2929.​

 

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The European currency is relatively stable against the US dollar during trading in the Asian session and is consolidating near local highs from May 5. The day before, the instrument showed active growth, which allowed leveling the results of Wednesday's "bearish" trend and brought the euro to a high at around 1.0600. EUR/USD was supported yesterday by expectations of the imminent end of quarantine due to the coronavirus in Shanghai, which will allow many enterprises to resume normal operation and have a positive effect on the dynamics of foreign trade.

In turn, yesterday's macroeconomic data from the US put moderate pressure on the positions of the US currency. Initial Jobless Claims for the week ended May 13 increased from 197 thousand to 218 thousand, which was higher than market expectations by 18 thousand. Philadelphia Fed Manufacturing Index declined sharply in May from 17.6 to 2.6 points, while analysts expected the decline to only 16 points.

The Minutes of the European Central Bank (ECB)'s meeting released the day before also contributed to the moderate growth of the single currency. In the report, the regulator pointed to the increasing risks associated with a sharp growth in inflation in the region, but at the same time maintained optimistic forecasts for both Q3 and Q4 of 2022. Also, many members of the ECB board are gradually speaking out in favor of tightening monetary policy. Analysts consider the rate hike at the end of summer or early autumn as most likely.

Bollinger Bands in D1 chart demonstrate flat dynamics. The price range is slightly expanded from above, remaining spacious enough for the current activity level in the market. MACD grows, preserving a stable buy signal (located above the signal line). Stochastic approached the level of "80" and reversed into a horizontal plane, reflecting the mixed nature of trading at the end of the current trading week.

Resistance levels: 1.06, 1.064, 1.069, 1.0726 | Support levels: 1.05, 1.0459, 1.04, 1.035

 

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The BTCUSD pair is moving in a long-term downtrend, but last week it stabilized within 31000–28700. The first investor reaction to the rapid decline of the UST stablecoin and the LUNA coin has passed. Therefore, monetary factors have again begun to have the most important influence on the market, which are currently balancing each other, preventing the price from moving to a new serious movement.

On the one hand, the expected "hawkish" position on the issue of tightening the monetary policy of the US Federal Reserve puts pressure on the stock market, and after it, on the cryptocurrency sector since they are seriously correlated. On the other hand, a sharp increase in rates increases the risks of a recession in the US economy, as the head of the regulator, Jerome Powell, has already warned about. In this regard, traders may once again turn to cryptocurrencies as an alternative for capital preservation. However, most experts expect that the pressure on the cryptocurrency market may continue in the future, and Galaxy Digital CEO Mike Novogratz even allowed it to fall by 70%.

The zone 30000–31500 seems to be the key for the "bulls," supported by the middle line of Bollinger bands. If it is broken, the upward dynamics may continue to 34375 (Murrey [3/8]) and 37500 (Murrey [4/8]). The key "bearish" level is 28125 (Murrey [1/8]), consolidation below which will ensure further decline to 25000 (Murrey [0/8]) and 21875 (Murrey [–1/8]).

Technical indicators do not give a single signal: the downward reversal of Bollinger bands indicates the continuation of the downward trend but the upward reversal of Stochastic and the reduction of the MACD histogram in the negative zone does not exclude a limited price growth.

Resistance levels: 31500, 34375, 37500 | Support levels: 28125, 25000, 21875​

 

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The ETHUSD pair is consolidating around 2000 for the second week in a row, being in a state of uncertainty under the influence of a number of opposite factors. The general pressure on the cryptocurrency sector has traditionally been exerted by the tightening of monetary policy in the USA: a sharp increase in rates strengthens the position of the US currency in relation to alternative assets.

On the other hand, a serious drop in asset quotes is hindered by the imminent transition of the Ethereum network to Proof-of-Stake (PoS), the preparation for which is nearing completion. The main Ropsten test network will be switched to the new algorithm on June 8, after which, in the absence of failures, the developers will announce the date of transition to PoS and the main Ethereum network. The approximate launch date, according to leading specialist Preston Van Loon, is considered to be August of this year. This information was also confirmed by the founder of Ethereum Vitalik Buterin. During the ETH Shanghai summit, he said that the network's transition to PoS could take place at the end of summer, but did not rule out a postponement to September-October in case of technical problems. It is assumed that after the transition of Ethereum to a new confirmation algorithm, the production of ETH, and after it, the supply of the token on the market will sharply decrease, which should lead to positive dynamics of the cryptocurrency. The most optimistic experts predict a price increase after switching to PoS to 5К dollars for one ETH coin.

The price of the ETHUSD pair continues to consolidate around 2000 (Fibonacci retracement of 61.8%). To start a serious growth, the quotes will have to consolidate above the middle line of the Bollinger Bands in the area of 2188. In this case, the growth will continue to the levels of 2500 (Murray [4/8], Fibonacci retracement of 50.0%) and 2812.5 (Murray [5/8]). If the level of 18750 (Murray [2/8]) breaks down, the quotes will fall to the level of 1562.5 (Murray [1/8], the lower line of the descending channel).

Technical indicators do not give a single signal: the Bollinger Bands are directed downwards, which indicates the continuation of the downward trend, but the Stochastic is reversing upwards, and the MACD histogram is stable in the negative zone.

Resistance levels: 2188, 2500, 2812.5 | Support levels: 1875, 1562.5​

 

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The XRPUSD pair is moving within a wide downward channel, but it has been consolidating around 0.41 in relative equilibrium for the second week.

At the moment, the asset's downtrend is maintained, signaled by a downward reversal of the Bollinger and Stochastic bands. To resume a serious decline, the price will have to break below the support zone of 0.4100–0.3650, and in this case, the trading instrument will be able to continue moving towards 0.2930 (Murrey [3/8]) and 0.1953 (Murrey [2/8], the lower limit of the downwards channel). The key "bullish" level is 0.4883 (Murrey [5/8]), above the middle line of Bollinger bands, the breakdown of which will give the prospect of resuming the upward dynamics of the token quotes to the area of 0.6000 (Murrey [6/8], Fibonacci correction 23.6%), 0.6836 (Murrey [7/8]) but so far this variant of further movement seems less likely.

Resistance levels: 0.4883, 0.6000, 0.6836 | Support levels: 0.3650, 0.2930, 0.1953

 

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ADAUSD is trading within a downtrend; however, the price has been consolidating for the last two weeks in anticipation of new movement drivers. The cryptocurrency market is in a state of balance, as the consequences of further tightening of monetary policy in the United States are balanced by the possibility of a recession in the American economy, in which assets alternative to the dollar will again have a chance to ascend.

Currently, the token is testing the level of 0.4882 (Murray [1/8]), consolidation below which will give the prospect of further decline to the area of 0.3906 (Murray [0/8]), 0.2929 (Murray [-1/8]). If the center line of Bollinger Bands and the level of 0.5859 (Murray [2/8]) is broken out, the growth of quotations may resume to the levels of 0.6835 (Murray [3/8]), 0.7812 (Murray [4/8]). However, a further decline in the trading instrument seems to be preferable for now, since technical indicators confirm the continuation of the downtrend: Bollinger Bands and Stochastic are reversing downwards, and MACD histogram is stable in the negative zone.

Resistance levels: 0.5859, 0.6835, 0.7812 | Support levels: 0.4882, 0.3670, 0.2929, 0.1953​

 

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In early May, the bidders tested the key support in the area of 28800, the breakdown or retention of which will have a significant impact on the further dynamics of the BTCUSD pair.

The collapse of the Terra ecosystem, one of the most ambitious developments in the field of decentralized finance (DeFi), led to a decrease in the total value of the cryptocurrency sector by more than 83B dollars, as investors rushed to more secure safe haven assets. BTC reacted with a decline to the global support of 28800 and temporarily stopped near this area.

Holding this level by the "bulls" will allow the asset to regain an uptrend with a target in perspective for several years in the area of the historical maximum of 68300. Additional support for the crypto market can be provided by investor sentiment, which will switch from the USD to riskier assets. This will require global stabilization – the equalization of global inflation and the end of the military conflict in Ukraine, or at least the transition to the stage of de-escalation. Otherwise, with the breakdown of the 28800 level and the price consolidation below it, the rapid decline of "digital gold" will continue with a target at around 19200.

The mid-term trend formally remains downward, but a sideways movement is now forming on the chart with resistance in the area of 30650 and support at the level of 28580.00. A breakout of the resistance level will open up prospects for an upward movement up to the 34050 mark. A breakdown of the support level will lead to an update of the May low of 26800.

Resistance levels: 30650, 34050, 37340 | Support levels: 28580, 26800

 

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The ETHUSD pair started the week with growth and rose to the middle line of the Bollinger Bands in the area of 1960, where it is now.

ETH positions are still supported by the expectation of the imminent transition of Ethereum to the Proof-of-Stake (PoS) algorithm. Earlier, the lead developer Tim Beiko announced the beginning of the preparation of the main Ropsten test network for the transition to PoS, which should be completed on June 8. It will allow to analyze the process of merging the Ethereum and Ethereum 2.0 networks, identify technical problems, and assess how the upgrade will affect existing applications and customers. If successful, a date can be set for the transition to PoS and the main Ethereum network. Investors are looking forward to this moment, gradually reducing the number of free ETH on the market. Since the beginning of this month, the coin supply balance has corrected from 20.45M to 20.36M. On Monday, there was a threat of a market correction amid reports that the Singapore crypto-hedge fund Three Arrow Capital additionally brought 32K ETH to the market for a total of 60M dollars, as usually happens before the sale of an asset, but the overall fundamental picture continues to be positive for the coin.

The price is testing the middle line of the Bollinger Bands in the area of 1960 and, if consolidated above it, the growth will be able to continue to the levels of 2187.5 (Murray [3/8], Fibo retracement of 23.6%), 2500 (Murray [4/8]). The key for the "bears" is the 1750 mark (near the May lows), the breakdown of which will allow the quotes to continue moving to the levels of 1562.5 (Murray [1/8], the lower limit of the descending channel), 1250 (Murray [0/8]).

Resistance levels: 1960, 2187.50, 2500 | Support levels: 1750, 1562.50, 1250​

 

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The XRPUSD pair continues to trade within a wide descending channel, but this week it attempted an upward trend, as did most of the cryptocurrency market.

Currently, the token price is consolidated above the middle line of the Bollinger Bands (0.4070), but to start a more serious growth, it will have to overcome the 0.4395 mark (Murray [1/8], upper line of the Bollinger Bands). In this case, the targets will be the levels 0.4883 (Murray [2/8]), 0.5371 (Murray [3/8]) and 0.6 (Murray [4/8], Fibo retracement of 23.6%). The key support zone for the "bears" is still 0.3900-0.3650, the breakdown of which will allow the quotes to continue moving to the area of 0.2930 (Murray [-2/8]) and 0.1953 (Murray [2/8], the lower boundary of the descending channel).

In general, a serious movement of quotations is possible in the near future, as indicated by the consolidation of the Bollinger Bands and the price at around 0.4100, but its direction has not yet been determined. The MACD histogram is shrinking in the negative zone, and the Stochastic is directed upwards, but it approaches the overbought zone, which does not exclude a reversal to a downward movement.

Resistance levels: 0.4395, 0.4883, 0.5371, 0.6 | Support levels: 0.3650, 0.2930, 0.1953​

 

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This week, the ADAUSD pair was trading within the general market trend: first, the price rose to 0.6835 (Murrey [3/8]), which allowed the token to overtake XRP in terms of capitalization and take sixth place in this indicator but then the instrument corrected downwards, having lost part of the won positions, and is now in the 0.5600 area.

Investors are looking forward to activating the Cardano network hardcore called Vasil, which should take place this month. According to network founder Charles Hoskinson, the upgrade will lead to a significant increase in scalability and expand the use of smart contracts, which will allow developers of the growing DeFi application market to get many useful options. The community expects the Vasil hard fork to be a price boost, just like previous key network upgrades. However, experts note that the current fork, unlike the previous ones, will take place against the backdrop of a downtrend, when the cryptocurrency market is under serious pressure due to the tightening of monetary policy in the United States. Under these conditions, the ADA coin price may stabilize but not grow.

The key “bullish” level is 0.5859 (Murrey [2/8]), consolidation above which will allow the trading instrument to continue moving to 0.6835 (Murrey [3/8]) and 0.7812 (Murrey [4/8]). If the middle line of Bollinger bands and 0.4882 (Murrey [1/8]) is broken down, the price may return to the area of 0.3906 (Murrey [0/8]) and 0.2929 (Murrey [–1/8]).

Technical indicators do not give a single signal: Bollinger bands are consolidating, as happens before a serious price movement, the MACD histogram decreases in the negative zone but Stochastic reverses downwards.

Resistance levels: 0.5859, 0.6835, 0.7812 | Support levels: 0.4882, 0.3906, 0.2929.​

 

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$28800 prevents the asset from further decline
Over the past four weeks, sellers in the BTCUSD pair have been testing the key support level of 28800 but have not been able to consolidate below it. The "bearish" activity is probably gradually declining, and soon "digital gold" may start an upward movement with the first target around 34500.

The pressure on the cryptocurrency is exerted by the policy of the US Federal Reserve, aimed at raising interest rates and tightening monetary conditions. At the meeting on June 15, the "hawkish" policy of the financial authorities will continue, and the market expects the index to be corrected by at least another 50 basis points. The attention of investors towards the US currency switched towards the end of last year when bitcoin set an all-time high around 68200. However, the cryptocurrency continues to be popular with traders, especially against the backdrop of global instability, as it can serve as a hedge against inflation, which is accelerating in all developed countries.

From the standpoint of technical analysis, around 28800, the direction of the asset's dynamics is determined. If the level can be kept, the growth will continue with the targets at 34500 and 48050. Otherwise, the global trend will reverse to a downtrend with the target at 19200.

The medium-term trend is slowly turning upwards. Last week, the traders managed to break through the resistance level of 30650.00, and now the growth target is 32350. If it is overcome, the quotes will rush to the area of 34050. The key trend support is shifting to 28500.

Resistance levels: 30650, 34050, 37340 | Support levels: 28500, 26800​

 

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High probability of continued global decline​

ETHUSD continues to decline as part of the global general market trend, consolidating around 1755.

Analysts at CoinShares reported the ninth consecutive week of outflow of investor funds from Ethereum, this time amounting to 32M dollars, which indicates a clear "bearish" mood in the market. Even the announced test of The Merge update in the Ethereum Ropsten network, which is designed to improve security and increase throughput by switching to the Proof-of-Stake algorithm, has almost no positive effect on the instrument quotes. In the absence of technical errors during the test, the update will be available to users by August 2022. However, supporters of The Merge are confident that it could put deflationary pressure on ETHUSD positions as the standard token burn reduces its overall supply in the market, pushing the price higher.

Another negative signal for the cryptocurrency can be the recent offer by the developer Lido Finance to its management platform Lido DAO to diversify half of its portfolio by selling 10K ETH worth 17M dollars if the market continues to fall. Since the downside prospects are extremely high, the probability of selling, which will only accelerate the fall, is also very high.

As a result, the positions of the main competitor of "digital gold" continue to actively weaken, and a trend change is unlikely in the near future.

On the global chart of the asset, a downtrend continues to form, having consolidated the day before below the support line at around 1866, which coincides with the level of the initial trend of 61.8% of the Fibonacci extension. Holding the price below this level significantly increases the likelihood of a continuation of the global decline. Technical indicators maintain a steady sell signal: the fluctuation range of the Alligator indicator EMAs is expanding towards decline, and the histogram of the AO oscillator is held below the transition level.

Resistance levels: 1890, 2320 | Support levels: 1660, 850​

 

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XRPUSD, H4
On the four-hour chart, there is a narrowing of the price in the side channel of 0.3572 – 0.4345, which indicates an imminent impulsive movement of quotes. The formation of a "bullish" candlestick analysis pattern Inverted Hammer above 0.3755 signals that the asset has reached a local low, while the Bullish Belt-Hold pattern emphasizes buyers' confidence. Most likely, the quotes of the token will head towards 0.4345, consolidation above, which will allow the XRPUSD pair to rise to the zone of 0.4751 – 0.5373. An alternative scenario will be relevant if the buyers fail to hold the key support level of 0.3572.

XRPUSD, D1
On the daily chart, there is a formation of a Symmetrical Triangle price pattern, after which the price can go either upwards or downwards. Considering that the instrument is currently trading at the bottom at a strong support level, then most likely, the movement will be upwards, which is confirmed by the formation of a series of "bullish" Hammer patterns. In the current situation, the most likely scenario is the growth of the asset to the area of 0.4345 – 0.5373.

Resistance levels: 0.4345, 0.4751, 0.5373 | Support levels: 0.3572, 0.3043, 0.2614​

 

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Decline within the general market trend​

ADAUSD is actively declining as part of the general market dynamics, being at 0.6448.

On the global chart of the asset, the price is trading in a stable downtrend, turning into a full-fledged trend at the end of March after overcoming the Fibonacci 61.8% full retracement level at 1.2230. However, recently the quotes have been actively rising, having reached the level of an initial Fibonacci retracement of 23.6% at 0.6400, in case of fixing above which the local growth will continue until reaching the level of a complete Fibonacci retracement of 61.8% (0.9298).

Technical indicators confirm a likely upside scenario, reversing towards growth: fast EMAs on the Alligator indicator have already crossed the signal line from below and began to expand the range of fluctuations, while the AO oscillator histogram has moved into the buy zone, having overcome the zero level, and continuing to form rising bars.

Resistance levels: 0.7480, 0.9298 | Support levels: 0.4546, 0.3​

 

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ETH USD, H4​

On the four-hour chart, the Bear flag price pattern formed, which has completely completed its formation, reaching 1079.74. At this support level, sellers met resistance caused by forming a "bullish" Engulfing pattern, which included a reversal model of the Hammer candlestick analysis. In this situation, it is obvious that the asset is strongly oversold, and the "bulls" will be able to win back part of the lost positions successfully. After the breakout of the resistance level of 1429.97, the upward dynamics will continue to the area of 1746.30–2153.01. If the support level of 1079.74 is held, the quotes may go down to 898.98–565.22.

ETH USD, D1​

On the daily chart, the Downwards triangle price pattern has completed its formation, and now there is the formation of a "bearish" Three black crows candlestick analysis pattern, which signals a continuation of the downtrend. At the support level of 1079.74, a Hammer reversal pattern is formed, indicating a possible reaching of the base price. After successfully forming this pattern, the scenario with an upward trend seems to be the most probable. Consolidating of the "bullish" positions above the resistance level of 1429.97 will allow the asset to head higher to the range of 1746.30–2153.01.

Resistance levels: 1429, 1746, 2153 | Support levels: 1079, 898, 565

 

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XRP USD, the downtrend continues​

Although the court hearings between Ripple and the US Securities and Exchange Commission (SEC) in the case of an unregistered sale of securities under the guise of XRP tokens for a total of 1.3B dollars are still ongoing, the company is actively developing and offers its partnership to large international brands. So, yesterday, the Brazilian platform for international transfers, Remessa Online, announced that it was able to significantly increase its cross-border payment traffic thanks to the cooperation with Ripple, which supplies enterprise blockchain solutions based on RippleNet technology.

Yesterday it became known that the popular wallet for storing coins, Xumm Wallet launched an update, thanks to which its users could make transactions from XRPL accounts, avoiding entering a login and password. The solution also allows users to issue a limited set of rights, which significantly increases the safety of user data.

In general, despite the general fundamental background, cryptocurrency quotes are declining, like the entire market, and there are still few prospects for growth, especially yesterday, the US Federal Reserve meeting, the decision of which may strengthen the position of the US dollar, which is the quoted currency in the pair.



Asset quotes are falling within the global downward channel, approaching the support line. Technical indicators maintain a stable sell signal: indicator Alligator’s EMA oscillation range is quite wide, and the histogram of the AO oscillator forms downward bars in the negative zone.

Resistance levels: 0.3712, 0.5022 | Support levels: 0.2785, 0.2

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ADA USD, trading within a local downtrend​

On the global chart of the asset, the price is in a stable downtrend, continuing unsuccessful attempts to break the year’s low of 0.4340, which significantly increases the likelihood of a more significant rebound and upward correction. After the completion of this local growth, the downward dynamics may increase to the initial trend of 61.8% on the Fibonacci extension, around 0.1555.

At the four-hour time interval, trading is taking place within the Expanding formation pattern, within which the formation of the fourth wave has begun, which should become ascending, reaching the resistance line around 0.8731.

Technical indicators confirm the probable upward scenario, reversing upwards: fast EMAs on the Alligator indicator began to actively approach the signal line, narrowing the range of fluctuations, and the AO oscillator histogram is close to the transition level, although it forms bars with a downward trend.

Resistance levels: 0.6451, 0.8731 | Support levels: 0.4340, 0.1554​

 

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BTCUSD, the crypto market remains under pressure​

The main factor of pressure on the cryptocurrency sector is still the sharp tightening of the monetary policy of the US Fed, which creates serious risks of recession in the American economy. As a result, bidders are increasingly abandoning risky assets, including investing in shares of technology companies and cryptocurrencies. It should be noted that at present, the stocks of focused on the digital sector MicroStrategy, Coinbase, Silvergate Capital and others are subject to the greatest negative impact. Thus, the loss of MicroStrategy due to the fall of the market amounted to 1B dollars. Last week, it also became known that the cryptocurrency hedge fund Three Arrows Capital is exploring the possibility of selling its assets, and the Asian-focused crypto lender Babel Finance announced the suspension of work.

In general, digital assets are under serious pressure, and the situation will continue to worsen as the US Fed further increases interest rates.

Technically, the key zone for the "bears" is 20000 - 18750. If it breaks down, the decline can continue to 15625 (Murray [1/8]), 12500 (Murray [0/8]) and 10000. With a breakout of the level of 21875 (Murray [3/8]), an increase in the area of 25000 (Murray [4/8], the middle line of the Bollinger Bands) is not excluded, but it is unlikely to lead to a reversal of the current downward trend, the persistence of which is confirmed by technical indicators: the Bollinger Bands are reversing downwards, and the MACD histogram is stable in the negative zone.

Resistance levels: 21875, 25000, 31250 | Support levels: 20000, 18750, 15625, 12500, 10000​

 

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ETH USD - Murray analysis
The ETHUSD pair continues to trade within a wide descending channel and last week fell to its lower border in the area of the lowest values since December 2020 at 880.

Currently, the price is making an attempt to grow, but for a serious recovery it needs to break above the level of 1562.5 (the middle line of the Bollinger Bands, Fibo retracement of 23.6%, Murray [1/8]). In this case, the movement will continue to the levels of 1875 (Fibo retracement of 38.2%, Murray [2/8]) and 2187.5 (Fibo retracement of 38.2%, Murray [3/8], the upper line of the Bollinger Bands). The key for the "bears" remains the level of 937.50 (Murray [-1/8]), at the breakdown of which the downward dynamics will continue to the area of 625.00 (Murray [-1/8]), 500. The current downward trend persists: the Bollinger Bands have reversed downwards, while the Stochastic is directed upwards, and the MACD histogram is decreasing in the negative zone, which creates the probability of a corrective growth, but is unlikely to lead to a reversal of the current trend.

Resistance levels: 1562.5, 1875, 2187.5 | Support levels: 937.5, 625, 500​