Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The trend of ETH on shorter terms differed from the market structure on higher terms.
- A sharp drop in exchange supply could give bulls a chance to break past the main resistance.
Ethereum [ETH] investors continued to present different stories on the chart. On the higher timeframes, such as the 12-hour and daily, the ETH market structure remained bullish as the uptrend remained intact. However, on the lower time frames such as six o’clock and four o’clock, the bears prevailed due to the price rejection at the $2,128 resistance level.
Read Ethereum’s [ETH] Price Forecast 2023-24
This has left Ethereum stuck in a range for over a month as price action closely mirrors that of Bitcoin [BTC].
Bears and bulls were evenly matched on lower time frames
Source: ETH/USDT in trading view
The price rejection at the $2,128 resistance level dropped Ethereum to the $1,774 support level on May 12, ushering in a bearish trend on the lower timeframes. This then saw ETH fluctuate between the $1,774 support and $1,924 resistance levels, with neither bears nor bulls having the required momentum to breach either level.
ETH’s ranging activity could continue due to prevailing market conditions and price trading at the mid-range of $1,848, as of writing. The indicators on the chart showed neutrality as buyers and sellers continued to evaluate their positions.
The Relative Strength Index (RSI) has been fluctuating above and below the neutral 50 mark since June 6. It was at 47 at the time of going to press to emphasize the market’s neutral position. The On-Balance Volume (OBV) maintained its linear movement, while the Chaikin Money Flow (CMF) hovered just above zero with a slightly positive reading of +0.03.
A retest of the support or resistance level can yield significant results for bears or bulls as both levels have been tested multiple times. A break below $1,774 will see bears push towards $1,718. On the other hand, a break above USD 1,924 will see bulls push towards the key USD 2,000 level.
How much are 1,10,100 ETHs worth today?
Bulls have a slight advantage
Source: Sentiment
Dates from Sanitation showed that the supply of ETH on exchanges had declined sharply since May 1. This highlighted the reduced selling pressure that could give bulls a chance to rally.
Conversely, the rise in the number of active addresses echoed increasing bullish sentiment. Active addresses on Ethereum rose from 5.3 million on May 23 to 5.77 million at the time of going to press. With the funding rate remaining positive, a significant bullish charge could be in store.
