Ethereum 360 #15: 5th July 2021
Hello everyone, welcome to a new installment of Ethereum 360, with predictable analysis seen as the range continues to hold! In this article, we will dwell on DeFi with on-chain data, then I will discuss technical analysis. Ethereum 360 is go!
DeFi looking attractive
Let’s first touch on DeFi. Its volume has been decreasing. You might see this as bad news; well, yes and no. The high ETH fees we saw not too long ago, although they have now dropped back down, are a cause of this fall in volume. In addition, tokens have suffered a sharp decline in recent weeks and are therefore less attractive.
As a result, decentralised exchanges (DEXs) have recorded fewer transactions. All the same, let’s compare this with user numbers.
On this second graph, we can see the number of DeFi users. They are on the rise. Adoption is pressing on despite the falls in token prices and ETH fees in particular.
The increase in users since January 2021 stands at more than 120%. In June, we had almost 8% more users (data and graphs from Glassnode’s DeFi report).
A potential bullish recovery?
Now let’s look at the weekly chart. First of all, we see that the price drew on support in the Order Block (OB), wicking into the box.
An engulfing bullish candle has been posted off of support; one more sign that the bottom is in. The price is ranging but liquidity above the wicks towards the $2,800 level remains. Finally, an imbalance structure is located just above, giving hope for a return to this area at least.
Looking at the daily, the range is all the more visible. The low point has been hit and we are now at the mid-range, in red, that stands in the way of the price.
The low point of the range coupled with the resistance line suggests that the top of the range is likely to be touched. A lot of people will be taking profits at this level, so be careful once it is reached.
Finally, on the hourly, the price has retraced 50% of its rise by taking some of the liquidity below the last low point. I like to see a reversal candle on this timeframe before opening a long. Unfortunately, that is not yet the case here.
Based on this analysis, and through the different timeframes, I remain bullish on ETH, but be careful not to enter at any old price. Over the medium term, the trend remains bearish, so beware!
Thanks for reading, I was Akinabourse, and I’ll see you again on Wednesday for an analysis of Binance Coin (BNB)! Remember, never invest more than you can afford to lose and above all DYOR. See you soon on CoinTribune!
Passionate about technical analysis and technology, I have been diligently following cryptocurrencies since 2017. Beyond trading and investing, I try to democratise, in my own way, the ecosystem that will undoubtedly change our habits in the future!