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Ethereum bounces from $1600: What’s ahead?

2min Read

Here’s ETH’s recovery pain point after a strong rebound from $1600 support level.

Ethereum bounces from $1600: What's ahead?

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

  • ETH saw a corrective bounce from key ascending support near $1600.
  • Open interest rates declined; the CVD spot eased, suggesting muted demand. 

Ethereum [ETH] rebounded strongly from critical ascending support near $1600. But a recent report portrays grim prospects for the ecosystem as fees, NFT volume, TVL (total value locked), and overall network growth declined. 

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

The $1800 and $1700 price zones have been key support levels in Q2 2023. However, both supports have been breached as Bitcoin [BTC] saw massive losses, and macro headwinds persisted in Q2. 

Can bulls flip $1700 to support?

Source: ETH/USDT on TradingView

The ascending support (blue line) has been at a crucial demand level since early 2023. The subsequent ETH’s lower lows from mid-April prompted a retest of the ascending support on 15 June. 

But ETH rebounded strongly from the ascending support, posting about 7% gains, rising from $1627 to $1769. The mild rally fluctuated narrowly below the $1740 resistance at press time. 

The RSI (Relative Strength Index) rested on the neutral level after a recent surge, suggesting less buying pressure at the time of writing. But the OBV (On Balance Volume) was significantly below the highs recorded in the second half of May – muted demand. 

Besides, the H4 market structure was bearish at press time and could only flip bullish if ETH moved beyond $1775. So, a downswing couldn’t be overruled, and a retest of the ascending support near $1640 was on the cards.  

Conversely, a surge above the resistance level and a close above $1775 could make a foray into $1800 and a retest of the trendline resistance feasible. 

Open interest rates declined; CVD spot eased

Source: Coinglass

Throughout June, ETH’s open interest (OI) rates, which track the number of futures’ open contracts, have declined from >$6.2 billion on 3 June to <$5.5 billion by the time of writing.

That’s more than a $0.5 billion drop in OI, which painted a prevailing bearish sentiment in the futures market. 

Is your portfolio green? Check out the ETH Profit Calculator

On Coinalyze’s 1-hour chart, the CVD (Cumulative Volume Delta) spot, which tracks buying/selling volume, rose sharply from 15 June but moved sideways at the time of writing.

It shows declining buying volumes and cautions ETH near-term bulls, as prices could go in either direction. 

Source: Coinalyze


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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