The following is an analysis of whether ETH can form effective support around $2200 and rise:
Current Price Situation
According to data from June 24, ETH has fallen below $2200, currently quoted at $2195.350098, with the 24-hour increase narrowing to 0.44%.
Technical Analysis
- Moving Averages: According to data from bitgetapps.com, multiple moving averages for ETH show sell signals, such as EMA (10), SMA (10), EMA (20), etc., indicating that short-term and medium-term trends are unfavorable for ETH.
- Pivot Points: The support levels of its pivot point are S1 at 2125.31, S2 at 2022.41, and S3 at 1928.14, while the current price is approaching S1. If it cannot stop falling around $2200, it may further drop to S2 or lower.
- Historical Trends: Historically, from the end of 2023 to August 2024, the $2100-$2200 range has been an important support zone for ETH, but currently, this price range is facing significant pressure.
Market sentiment and capital flow
- Institutional Holdings: BlackRock has purchased Ethereum through its iShares Ethereum Trust (ETHA), increasing its holdings by over $500 million in recent weeks, bringing its total holdings to 1.51 million ETH, indicating a long-term bullish outlook for ETH from institutions. However, the short-term operations of institutions are not clear, and their holding strategies may be more based on long-term positioning rather than short-term price trends.
- Market Sentiment: The sentiment towards ETH in the market is quite complex. On one hand, there are views that the ETH price needs to return above the 'macro range' of $2200 to accumulate more upward momentum; on the other hand, due to ETH's recent decline, market sentiment has also been affected, and investor confidence may have wavered.
Macroeconomics and Industry Dynamics
- Macroeconomics: The uncertainty of global trade disputes has sparked risks of economic recession, which may affect the overall performance of the cryptocurrency market and thus put pressure on ETH's price.
- Industry Dynamics: Events such as Ethereum's network upgrades have a certain impact on its price. For example, after the Pectra upgrade on May 7, the ETH price reacted mildly, reflecting a lack of market interest in Ethereum. Additionally, the development of competing public chains also poses certain competitive pressure on Ethereum.
In summary, ETH faces significant pressure around $2200. If it cannot effectively stop falling and regain this price level, the difficulty of rising will be considerable. Investors should fully consider the above factors when making decisions and closely monitor market dynamics.