The crypto market is still trying to recover from the shock in the market due to the super drop in the past week. As the second largest cryptocurrency Ethereum ETH has lost about 45% of the value in 10 days only. The market has no string buyers yet and the bears are leading the market so far.
In the daily timeframe, the Ethereum (ETH) is still going downward within a descending channel (in yellow). However, the last time the channel bottom was touched, was in the fall of May 2021. The asset price is currently on its way to touch the bottom of the channel.
If we take the bearish scenario, when the sellers push the price to go down, the potential demand zone can be considered to be in the range of $700 to $900 (in green), if the asset touched this level, it might enter the accumulation phase after that.
And if we take bullish scenario, the ETH price will likely go towards static resistance at $1,700 (in red). Breaking the mentioned resistance depends mainly on the strength of the buyers. Also, if we look at the current macroeconomic situation, we can tell that it made the investor look at the high-risk assets with doubt, however, this scenario does not seem to happen.
Against the last cryptocurrency Bitcoin (BTC), the intersection of dynamic (in blue) and static (in green) supports at 0.05 BTC has prevented further price drops of the asset. Moreover, the price of BTC is currently facing a high volatility below the first resistance at 0.055 BTC. If the bulls can be able to defend the support, the Ethereum price against the Bitcoin might increase in a very short term. In this case of the scenario, it can easily move towards the resistance of 0.055, 0.06, and 0.063 BTC, respectively, which are Fibonacci Retracement levels of 0.236, 0.382, and 0.5.