Early May Update: Technicals
ETHUSD daily chart shows ETH sitting at an ascending support line that it formed back in February and touched it with a solid bounce at the end of March. The bearish volume has declined with bullish volume faintly increasing over the last couple of days.
If the volume picks up and no fundamental “snipers” shot us down, ETH could rebound up to the $180 zone where it hits another ascending resistance line formed in February. However, if the unpredictable crypto market shudders again, ETH could skid below to the $143 support line.
Ethereum has been outperformed by bitcoin in the last week by more than 2.7%. In fiat terms, ETH is also in a minus, 3.49% on the week.
Trading volume has been steadily picking up for the whole month of April – reported volume in the last 24hrs is $5.7b (the strongest volume day in April for ICX was April 3rd with $10.6b), but “Real 10” (trading volume on the exchanges that provably prevent wash trading) volume is 52x lower – $110m. This means that ETH’s liquidity is massively inflated even though it is still among the most liquid coins on the market, trailing only bitcoin and BNB.
Moreover, ETH has an average buy support, according to coinmarketbook.cc. Buy support is measuring sum of buy orders at 10% distance from the highest bid price. This way we can eliminate fake buy walls and whale manipulation and see the real interest of the market in a certain coin. ETH currently has a $60m of buy orders measured with this method, which sets ETH buy support/market cap ratio at 0.35%, a wide-market average. This novel metric indicates there are a lot of manipulations, inflated liquidity and fake orders on all crypto trading pairs, including ETH pairs.