Brief analysis of $ETH and the appropriate purchase timing
Current situation:
- Current price: $1,751.01, down by 3.38% over 24 hours.
- Daily volume: 8,000.91 ETH, below moving averages (MA5: 23,993.11, MA10: 22,181.98), indicating weakness in liquidity and current momentum.
Technical indicators analysis:
1. Moving Averages (EMA):
- EMA7: 1,754.37 (immediate resistance).
- EMA25: 1,765.64 (strong resistance).
- EMA99: 1,705.70 (long-term support).
- Note: The price is below EMA7 and EMA25, reflecting short-term bearish pressure, but is above EMA99 which may serve as a key support.
2. RSI(6) Indicator: 38.82
- Close to the oversold area (below 40), but has not reached 30 yet. This may indicate an opportunity for a corrective rise if momentum improves.
3. MACD Indicator:
- DIF: -4.65 | DEA: 1.28 | MACD: -5.93.
- The signal is negative with clear divergence, reflecting the dominance of the bearish trend. Any future convergence between the lines may indicate a potential change.
4. Support and Resistance Levels:
- Strong support: 1,697.56 - 1,648.09.
- Nearby resistance: 1,754.37 (EMA7) then 1,765.64 (EMA25).
Proposed purchase timing:
1. Ideal scenario:
- Bullish breakout above the level of 1,754.37 (EMA7) with an increase in volume confirming the return of buyers.
- Improvement in RSI above 45 with convergence in MACD lines towards a positive signal.
2. Conservative scenario:
- Price reaches support at 1,697.56 with signs of oversold (RSI < 35) then rebounds with confirmation from indicators.