Ethereum: Is rejection at $1924 short-lived?
The 12H timeframe price chart of Ethereum showed the short-term bullish dominance with declining exchange supply hinting at further gains.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Successive bullish candles spurred Ethereum to June highs.
- Sustained bullish momentum could flip the market structure on higher timeframes.
The bullish sentiment sweeping across the crypto market has spurred significant capital inflows. The total crypto market volume over the last 24 hours stood at $47.81B, a 25.13% increase, according to CoinMarketCap.
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The massive increase in volume saw Bitcoin [BTC] reclaim the $30k price zone with cascading effects on altcoins. Ethereum [ETH], the largest of all altcoins by marketcap, enjoyed notable gains with a price surge to $1,924. However, a price rejection at the price level posed some concerns about the strength of ETH’s bullish rally.
Significant gains spurred bulls toward critical resistance level
The 12-hour timeframe highlighted Ethereum’s strong push from the $1,718 support level. Three bullish candles in a row took ETH to the $1,924 resistance level. The $1,924 level has served as a strong roadblock to previous bullish advances in April and May, and it stood in the way of buyers again.
The price rejection saw ETH dip slightly with the king of altcoins trading at $1,888, as of press time. Despite the rejection, the signs look positive for a continuation of the bullish rally.
The capital inflow into ETH has been significant, as seen in the swift rise of the Chaikin Money Flow (CMF) indicator between 19 June and 21 June. Despite a slight dip, the CMF remained positive, as of press time, with a reading of +0.12. The RSI hovered just below the overbought territory to show strong bullish momentum.
Taken together, buyers could flip the $1,924 level on the next retest, due to the strong bullish momentum and the weakening resistance that has been tested severally. An inability to flip the level could drop ETH into a range with bears targeting the $1,800 price zone.
Decline in exchange supply could boost bullish rally
Read Ethereum’s [ETH] Price Prediction 2023-24
The steep decline of ETH’s supply on exchanges could advance the bullish momentum. Data from Santiment showed that supply on exchanges had dipped significantly since May. This decline could be linked to the rise in staking ETH.
The 90d Market Value to Realized Value (MVRV) ratio also crept above the zero mark and stood at 1.97%. This showed that buyers were slightly in profit with the possibility of more gains. Together, they presented encouraging signs for more bullish momentum in the short term.
