Ethereum – The key to ETH bulls regrouping will be…

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

• Sellers extended bearish dominance as prices remained under $1,924-resistance level
• Selling pressure highlighted by bearish crossover on MACD

Dwindling market fortunes for bulls saw Ethereum [ETH] sink below the $1,924 support level. The level had previously served as short-term support after ETH was rejected at the $2,000 psychological level on 14 July.

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

The price rejection swung the advantage in favor of sellers, with the rapid decline presenting bears with shorting opportunities. With a general market correction in progress, ETH bulls might need to be cautious as all signs point to more downside.

Bulls caught out by sharp bearish reversal

Source: ETH/USDT on Trading View

The significant gains of 13 July which took ETH to the $2,000-mark were taken as a sign of big things expected of the largest altcoin. However, a price report highlighted the danger for bulls around the $1,900 – $1,950 price range.

Bulls’ inability to hold the price at the aforementioned levels extended the bearish dominance, with ETH trading at $1,889 as of press time. Conversely, sellers would be looking to break the higher low of the last bullish rally. A break of this level could see the altcoin sink to $1,800.

Looking at the on-chart indicators on the 12-hour timeframe hinted at further price dips. The Relative Strength Index (RSI) moved under the neutral-50 to highlight the waning demand for ETH. The Moving Average Convergence Divergence (MACD) also recorded a bearish crossover with red bars below the zero level. This highlighted mounting selling pressure.

Shorts can look to enter new positions on a retest of the $1,900 – 1,920 price zone. This sell idea will be invalidated if bulls recover the $1,924-level with a bullish candle close above the resistance.

Contrasting fortunes for short-term and long-term holders

Source: Santiment

A look at the Market Value to Realized Value Ratio on Santiment revealed the prevalent sentiment among holders. The 30d MVRV ratio stood at -0.42% while the 90d MVRV ratio stood at 2.08%.

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This implied that short-term Ethereum holders are still holding onto losses while long-term holders are in profits, albeit marginally. If the bearish momentum continues, long-term holders could look to exit, leading to more downward movement for ETH.