Can Ethereum bulls make it past $1880

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Dis­claimer: The infor­ma­tion pre­sent­ed does not con­sti­tute finan­cial, invest­ment, trad­ing, or oth­er types of advice and is sole­ly the writer’s opinion.

  • The high­er time­frame bias was bear­ish but there were good chances of a move upward from $1760.
  • The lack of demand in May meant bulls must be cautious.

A recent analy­sis of Ethereum high­light­ed that the $1880 area rep­re­sent­ed a bear­ish order block and could serve as resis­tance. Over the past 48 hours, this zone was test­ed as resis­tance and ETH faced rejec­tion. The high­er time­frame mar­ket struc­ture was bear­ish as well.

Read Ethereum’s [ETH] Price Pre­dic­tion 2023–24

The num­ber of ETH non-zero address­es was on the rise, and the sup­ply held by top address­es has also increased dra­mat­i­cal­ly over the past month. Yet, the sup­ply held on exchanges was going high­er as well.

Will the bulls or the bears win this extend­ed skirmish?

A short-term range formation showed what traders and investors can look out for

Ethereum ping-pongs between support and resistance but the bigger picture was...

Source: ETH/USDT on TradingView

Over the past two weeks, Ethereum has trad­ed with­in a range that extend­ed from $1740 to $1880. The mid-point of this range at $1810 has served as low time­frame sup­port and resistance.

At the extremes of this range sat order blocks that the price has respect­ed so far.

The bull­ish order block (cyan) stretched from $1690 to $1770, and has already been test­ed in May. In the com­ing days, anoth­er retest could occur. In May, the OBV slipped beneath a sup­port lev­el marked on the chart and has test­ed the same as resistance.

This showed that the mar­ket was dom­i­nat­ed by the sell­ers. More­over, the RSI was also in bear­ish ter­ri­to­ry. Togeth­er they sig­naled fur­ther loss­es were likely.

To the south, the $1700, $1632 and $1500 are like­ly to be sig­nif­i­cant lev­els. Ethereum bulls could dri­ve a minor bounce from these lev­els, but the over­all trend remained bearish.

To change this, ETH bulls must dri­ve prices past $1880 and break the bear­ish order block.

Falling funding rates hinted at shifting market sentiment

Ethereum ping-pongs between support and resistance but the bigger picture was...

Source: Coin­a­lyze

The short-term charts from Coin­a­lyze showed that sen­ti­ment was firm­ly bear­ish. The Open Inter­est declined dra­mat­i­cal­ly in the past two days fol­low­ing the retest of the $1860 area and the sub­se­quent move downward.

The fund­ing rate remained pos­i­tive but has ticked low­er along­side the fall in the OI. Togeth­er, they showed sen­ti­ment was in favor of the sell­ers in the near-term.

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Anoth­er point that investors should con­sid­er is the fact that the $1700-$1800 region act­ed as stiff resis­tance from Sep­tem­ber 2022 to March 2023. Will the bears seize con­trol of this zone just two months after ced­ing it to the bulls?

With Bit­coin also expect­ed to find sup­port at $24k-$25k, it was pos­si­ble that Ethereum could incite pan­ic in the mar­ket before ral­ly­ing high­er in the com­ing months.

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