Ethereum: Can bulls reach $2000 this time?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- ETH’s higher timeframe structure was technically bearish, but bulls have some hope.
- Sustained bullish momentum and accumulation were necessary to force an uptrend.
The lower timeframe price chart of Ethereum [ETH] was strongly bullish at press time. The H4 chart presented the likelihood of retracement toward $1850 before ETH could climb higher. Yet, the daily timeframe was not as simple.
Read Ethereum’s [ETH] Price Prediction 2023-24
Investors with a multi-year time horizon do not care, though. Ethereum’s diamond hands were likely filling their bags throughout the past two years, and the sentiment behind the king of altcoins remained firmly positive.
The H4 break did not translate into a 1-day break in the structure
The daily market structure of Ethereum was on the verge of flipping bullish. A more aggressive way of reading the charts would be to count the move past $1770 itself as a bullish break. However, such aggression might be unwarranted in this scenario, as Ethereum was not consolidating before its next strong trend.
Rather, the market itself has been bearish in recent months, and strong surges northward need to be regarded with some suspicion by long-term buyers. The RSI showed upward momentum was strong, but the OBV could not breach a local resistance.
To the south, the $1770-$1800 area was likely to serve as a support zone upon a retest. It has been significant since late March, and there was an imbalance on the daily chart there as well.
Even though buyers must be cautious, a low-risk buying opportunity with clear invalidation would present itself should ETH prices sink to the $1770 area.
A spike in dormant circulation could be cause for concern
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The 90-day mean coin age has trended downward over the past two weeks. Yet, ETH’s 90-day MVRV ratio was back above zero. Together, they presented the likelihood that short-term buyers could take profits soon.
This could drive Ethereum prices lower, especially if the positive sentiment behind Bitcoin [BTC] falters in coming days. The dormant circulation metric was also one to monitor. Any exceptionally large surges, such as the ones earlier in June, could precede a wave of selling.