Ethereum merge took place in the last quarter of 2022, and since then, Ethereum’s value entered a mini-rally during the first month of 2023, hitting an intra-year high of $1,688.However, the rally quickly corrected as ETH saw a -13% drop in value since its peak.
Despite this retrace in value, the good news is that Ethereum’s available coins sitting on exchanges (and available to sell) have seen an overall decrease of 37%. This could be indicative of investors taking a longer-term view of the asset, sending it into self-custody, and removing potential selling pressure in the marketplace.
Ethereum’s recent price analysis
Ethereum price analysis show ETH closed yesterday’s trading session with a slight bullish momentum before falling sharply towards an intraday low of $1,478.18.Ethereum has been making lower lows and lower highs since its recent peak, forming a descending triangle on the intraday charts.
This bearish formation shows a horizontal support line at $1,490 and a descending resistance line. Unless ETH bulls can manage to break above this triangle formation, Ethereum is likely to see further bearish momentum in the coming days.
Looking ahead, if bulls can push ETH/USD beyond the descending triangle, then it will open up further upside potential toward the next major resistance located around $1,623.
On the flip side, if ETH/USD fails to break above the triangle formation, then Ethereum’s price could drop toward the next major support level, located around $1395. This key psychological support is likely to act as a strong barrier to any further bearish price action in ETH/USD.
Ethereum is trading at $1,505.09 at the moment of writing after breaching the key resistance of $1,500 on the 4-hour chart. Ethereum price is reviving at the moment as it is down by only 0.89%.
Ethereum’s technical indicators on the 4-hour chart are showing mixed signals, with a bullish bias; the Relative Strength Index is rising towards the 50 levels, indicating a possible bullish setup. On the other hand, the MACD has made a bullish crossover towards the positive zone.
Overall, Ethereum looks poised for bullish continuation in the short term as the available coins on exchanges continue to shrink by 37%. However, any further upside could be limited unless ETH bulls manage to break above the triangle formation and reclaim the $1,623 resistance level.
