Ethereum at 360 ° # 5: Analysis of May 31, 2021

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Hello everyone, I’ll meet you for this new 360 ° Ethereum issue. As always, on-chain data to end with technical analysis. I will try to enlighten you as much as possible in this issue. Resumption of the uptrend or simple rebound of the dead cat, Ethereum at 360 °, it is now!

High volatility!

Kaiko Data warns of the strong volatility of recent weeks.

Whether on Bitcoin or Ethereum, you have to be careful. Prices move a lot and are likely to sell off a lot of people in a very short period of time. Be careful if you are leverage!

, For people who want to invest, but don’t know when and how. I recommend DCA (Dollar Cost Averaging) which is a recurring purchase (every month or every week) to smooth the purchase price and thus counter this high volatility at a given time. So invest in several times for a limited PRU (Unit Revenues Price).

Massively hodged ERC-20 tokens

This second chart is not necessarily important for today’s analysis, but I found it nice to share it to show the 10 tokens with the most holders on Ethereum. This testifies to a craze for these projects and to lasting growth beyond the speculative aspect.

Top 10 tokens by number of Ethereum holders
Source: Cryptoranotk

We find stablecoins like USDT or USDT, as well as very well-known projects like Chainlink or Uniswap but also others a little less known like Liverpeer or OMG network.

A sideways price drift after its sharp drop

The underlying trend is still bullish despite the sharp drop in recent weeks. The price sideways to W above from $ 2000. Let’s focus on this visible lateralization in 4 hours.

What jumps out at this chart is the sliver of moving averages that could stand in the way of price.

Ethereum Perpetual Futures 4h

If not, ETH goes one step further to regain its short-term uptrend. The moving averages as well as the resistance of $ 3000 prevent me from being long on these levels. If these levels are broken, the OB (Order Block) between $ 3300 and $ 3600 may also block prices.

Thus, in this UT (Unit of time) despite a range conducive to a turnaround, many obstacles are likely to block the progression of the price and thus prove the buyers wrong.

Similar situation in H1 where the price arrives on resistance and is not far from the last high point which is a source of liquidity.

Ethereum Perpetual Futures 1H

I can see a decline to the point of imbalance to regain strength and be able to break this resistance. If the latter breaks, that will be good news for the bulls.

As I said above we are in an area where many moving averages are present. I am therefore more a seller in the very short term than a buyer. Even if the dip is probably established. The price can lateralize a good time. Be careful not to be too thoughtless buyers. Choose good starters.

It was the fifth issue of this “Ethereum 360 °” series. Most importantly, never invest more than what you can afford to lose and LEARN MORE. Have a good trade and see you next Friday for a new article on CoinTribune! If you have any points of improvement or feedback, please let me know directly on my twitter: akinabourse. Good week !

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Passionate about technical analysis and technology, I have been diligently following cryptocurrencies since 2017.
Beyond trading and investing, I try to democratize, in my own way, the ecosystem that will undoubtedly change our habits of tomorrow!


The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.


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