Last week was one of the worst stretches for the crypto industry over the past two years. The main assets have updated local lows, and the market capitalization has decreased to $740 billion.
Ethereum last week
Quotes of the main altcoin also sank significantly following the results of the previous trading week. Ethereum fell in price from $1,650 and updated the local bottom around the round $1,000 mark. However, unlike Bitcoin, Ethereum has managed to attract the attention of big business.
Ethereum was falling down to the level of $1,200, where stability appeared, which indicated the activation of buyers. Santiment confirm that the buying sentiment of the big business towards ETH has increased significantly during the market crash.
Analysts noted that addresses holding 100,000–1,000,000 ETH bought more than 650,000 ETH at the peak of the market decline. In part, it was the activation of big capital that allowed Ethereum to slow down the fall near the $1,200 area and maintain the $1,000 level.
A massive buyout of ETH/USD near $1,000 indicates the market's readiness to defend this frontier. In the medium term, this may mean that the local bottom of the main altcoin is formed precisely in the range of $1,000–$1,200.
ETH/USD analysis
The second key moment, showing the stability of ETH in comparison with Bitcoin, is a powerful attempt to form a bullish engulfing pattern on November 10th. The bulls failed but allowed the altcoin to gain a foothold above $1,200.
Subsequently, Ethereum continued its local decline, following Bitcoin, but managed to maintain the $1,200 support zone. In the short term, the main target of the altcoin will be the line of $1,280–$1,350. If it breaks out of this zone, ETH will follow to the resistance level near $1,450.
On the daily chart, the situation looks uncertain, as the potential of the bulls was exhausted after the retest of the $1,300 level. At the end of the current trading day, ETH is trying to storm the upper border of the $1,350 area, but technical metrics indicate the weakness of buyers.
The MACD indicator on the daily chart is moving in a downward direction in the red zone. At the same time, the stochastic oscillator has formed a bullish crossover near the level of 35, and the RSI shows an increase in buying activity.
The probability of a breakdown of $1,300 at the end of the current trading day is small since, before that, Ethereum had been moving near the $1,300 level for more than a month. In addition, the market is not in optimal conditions to maintain an upward momentum. Daily ETH trading volumes barely reach $13 billion.
Results
Ethereum needs a local pause to stabilize the situation and reduce the level of volatility. The fundamental interest in Ethereum is much higher than in Bitcoin at the current stage. Given this, it is likely that it is the altcoin that will resume the recovery movement towards the $1,500–$1,600 levels.
In addition, do not forget that Glassnode experts record the largest increase in stablecoins on exchanges in history. Historically, the growth in the volume of stablecoins indicates the readiness of large capital for mass purchases. Given the growing open interest of "whales" in ETH, there is every reason to believe that altcoin will be the priority target for buying.
