In recent market developments, Ethereum, the second-largest cryptocurrency by market capitalization, has faced increasing bearish pressure. The inability to sustain above the critical support level of $1,920 on 17 July has prompted a sentiment shift favoring the bears. Sellers have gained the upper hand, as indicated by the bearish short-term order block at $1,920. This development suggests a challenging period for Ethereum bulls.
Following a failed breakout attempt last week, Ethereum is expected to face a downward slide, potentially reaching range lows around $1,840. On 14 July, Ethereum briefly touched the $2k mark before succumbing to a rapid decline driven by sellers taking control of the market. Despite boasting the largest base of fee-paying users among cryptocurrency networks, Ethereum has trailed behind other networks regarding daily active users, signaling potential concerns for its market position.
Market analysis reveals an interesting aspect: a retest of short-term support at $1,920 for Ethereum. This event could provide valuable insights into the market’s next move. Comparatively, Bitcoin also experienced notable gains on 13 July but struggled to maintain them. However, the price action of Ethereum indicated a higher likelihood of further losses. These observations reinforce the notion of seller dominance in the Ethereum market.
Notably, Ethereum bulls’ inability to hold the $1,920 mark over the past three days has been accompanied by a declining On-Balance-Volume (OBV), indicating increased selling pressure. The Relative Strength Index (RSI) has hovered around neutral territory for several days, signaling an impending breakout.
As of the time of writing, Bitcoin’s price stands at $30,038.70, exhibiting a modest increase of 0.14% in the last 24 hours, with a trading volume of $13,502,020,366. Meanwhile, Ethereum is trading at approximately $1,911, showing a 0.68% rise from its 24-hour low of $1,878. Looking ahead, Ethereum finds strong support at the $1,878 level, and if prices manage to stay above it, a potential rally could materialize in the near future. The trading volume for Ethereum is recorded at $5,956,670,287.
These observations and insights indicate a challenging period for Ethereum, with bearish sentiments prevailing in the market. Market participants would closely monitor Ethereum’s ability to defend support levels and navigate the ongoing selling pressure. With various indicators signaling further downward movement, it remains to be seen how Ethereum’s price trajectory would evolve in the coming days.
To sum up, Ethereum’s price action has been bearish over the past few days. With indicators pointing to a potential retest of support at $1,840 and further downward movement, short positions may be attractive for traders seeking to capitalize on market volatility. The support and the resistance levels would determine Ethereum’s future price action. The next coming days would be critical for Ethereum’s price outlook.