Ethereum corrected lower and tested the $1,250 support zone against the US Dollar. ETH price is consolidating above $1,280 and it looks set for a fresh increase in the near term.

• Ethereum is holding gains above the $1,250 and $1,280 support levels.
• The price is currently correcting lower from $1,385, but it is above the 100 hourly simple moving average.
• There is a crucial contracting triangle forming with support near $1,275 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could correct again, but it is likely to remain well bid above the $1,250 and $1,275 support levels.

Ethereum Price is Holding Key Support

Yesterday, we saw a downside correction in Ethereum below the $1,350 and $1,300 support levels. ETH price even spiked below the $1,280 support level and the 100 hourly simple moving average.

It tested the $1,250 support zone and recovered steadily above $1,300. There was a break above the $1,350 resistance and a close above the 100 hourly simple moving average. However, ether price failed to surpass the $1,400 resistance zone.

A high was formed near $1,388 and the price is currently correcting lower. It is testing the 50% Fib retracement level of the upward wave from the $1,251 swing low to $1,388 high. There is also a crucial contracting triangle forming with support near $1,275 on the hourly chart of ETH/USD.

Source: ETHUSD on TradingView.com

The triangle support is close to the 76.4% Fib retracement level of the upward wave from the $1,251 swing low to $1,388 high. On the upside, the triangle resistance is near the $1,360 and $1,365 levels.

The main resistance is near the $1,385 and $1,400 levels. A successful close above the $1,400 resistance could open the doors for a fresh surge towards the $1,450 and $1,480 levels.

Dips Supported in ETH?

If ethereum struggles to remains stable above $1,300, it could correct further. An initial support on the downside is near the $1,280 level and the triangle trend line.

The main support is now forming near the $1,250 level. If ether fails to stay above the $1,250 support, it could decline further towards the $1,180 and $1,165 support levels.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly moving in the bullish zone.

Hourly RSI – The RSI for ETH/USD is currently close to the 50 level.

Major Support Level – $1,280

Major Resistance Level – $1,380

Source: https://www.newsbtc.com/analysis/eth/ethereum-steadies-above-1280/

Overview

• Total spot trading volume at $1.68 billion, 8% higher than the 30-day average of $1.55 billion.
• Total futures notional at $750.6 million.
• The top 5 traded coins were, respectively, Bitcoin, Ethereum, Tether, Polkadot, and Cardano.
• Strong returns today from Curve Dao (+17%) and Mana (+8.9%).

#####################. Trading Volume by Asset. ##########################################

Trading Volume by Asset

The figures below break down the trading volume of the largest, mid-size, and smallest assets. Cryptos are in purple, fiats are in blue. For each asset, the chart contains the daily trading volume in USD, and the percentage of the total trading volume. The percentages for fiats and cryptos are treated separately, so that they both add up to 100%.

Figure 1: Largest trading assets: trading volume (measured in USD) and its percentage of the total trading volume (January 20 2021)



Figure 2: Mid-size trading assets: (measured in USD) (January 20 2021)



Figure 3: Smallest trading assets: (measured in USD) (January 20 2021)

#####################. Spread %. ##########################################

Spread %

Spread percentage is the width of the bid/ask spread divided by the bid/ask midpoint. The values are generated by taking the median spread percentage over each minute, then the average of the medians over the day.

Figure 4: Average spread % by pair (January 20 2021)



.

#########. Returns and Volume ############################################

Returns and Volume

Figure 5: Returns of the four highest volume pairs (January 20 2021)

Figure 6: Volume of the major currencies and an average line that fits the data to a sinusoidal curve to show the daily volume highs and lows (January 20 2021)

###########. Daily Returns. #################################################

Daily Returns %

Figure 7: Returns over USD and XBT. Relative volume and return size is indicated by the size of the font. (January 20 2021)

###########. Disclaimer #################################################

The values generated in this report are from public market data distributed from Kraken WebSockets api. The total volumes and returns are calculated over the reporting day using UTC time.

Source: https://blog.kraken.com/post/7516/kraken-daily-market-report-for-january-20-2021/

Data published by crypto market data aggregator Messari shows that 83% of crypto assets that tagged all-time highs in January 2018 are still down by at least 90%.

The data was spotted by CMT Digital analyst Matt Casto, who tweeted data showing the average return-on-investment, or ROI, of crypto assets sorted by the year in which they posted record price highs.

Holding assets that hit high marks +3 years ago is proving to be a massive lost opportunity cost for deploying capital.

There’s a reason 83% of assets that hit a high price in January 2018 are trading +90% below their ATHs.

ATH/Cycle Low data is from @MessariCrypto API pic.twitter.com/Kfzfq69ZMp

— Matt Casto (@mcasto_) January 21, 2021

The data set included 410 assets that posted record prices during 2017 or later, with 2018’s 157 star coins performing the worst with an average of -90.71% since the previous ATH. 

2017’s top crypto’s have since crashed by 82% on average, while 2019’s crop is down 72%, and 2020’s standouts have shed 53%.

The data may help support the ‘great repricing’ concept, that the capital that once flowed into the “ghost-chain” layer-one blockchains that dominated the sector in 2017 and 2018 is now being redirected towards the nascent DeFi sector.

The concept is even a trading strategy for some, with dHedge pool manager Wangarian describing his strategy as longing “tokens that obtain direct value accrual (DeFi)” while shorting “dogs**t L1s that have no value accrual whatsoever.”

However, despite the poor performances of many altcoins from yesteryear when compared to their record highs, many older altcoins have still produced enormous percentage gains since bottoming out.

Since finding local lows during the “Black Thursday” crash of March 2020, Cardano (ADA) has increased nearly 1,700%, Zilliqa (ZIL) is up 2,670%, and Decred (DCR) has gained 14,130% from their respective price floors.

Source: https://cointelegraph.com/news/83-of-cryptocurrencies-that-peaked-in-2018-are-still-down-by-90