Connect with us
Active Currencies 14740
Market Cap $2,584,573,009,044.63
Bitcoin Share 51.55%
24h Market Cap Change $0.35

Ethereum [ETH] could stumble near $2000 despite bullish momentum, here’s why

2min Read

ETH bulls managed to slink into the $1900 zone, but they may not be so lucky when trying to cross the coveted $200 milestone.

Ethereum [ETH] could stumble near $2100 despite bullish momentum, here's why

Share this article

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

  • The lower timeframe momentum and structure favored ETH bulls.
  • The presence of strong resistance above meant that short sellers could find an opportunity next week.

Ethereum [ETH] bulls were able to defend the $1840 support in recent days and managed to push prices past $1900. While this was encouraging for lower timeframe bulls, there was the possibility that a foray to $2000 would see ETH rejected.


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


A confluence of technical factors suggested that the $2010-$2070 area was likely to offer stern resistance to bullish advances. Although Ethereum has traded within a range from $1800-$1965 recently, it appeared that a false breakout followed by a rejection was a likely scenario in the coming days.

Range highs or FVG or breakout past $2000?

Ethereum [ETH] could stumble near $2100 despite bullish momentum, here's why

Source: ETH/USDT on TradingView

The MACD formed a bullish crossover and pushed above the zero line as well. This showed strong bullish momentum, although the trading volume has been below average in the past few hours. Although ETH saw a retest of both the range highs and lows, the market structure was bullish since the price did not form a lower low.

There was a significant area of resistance at the $2025-$2150 area. An imbalance on the H4 chart was highlighted in white, and a bearish order block was directly overhead as well. Hence, a possible scenario in the coming days was the near-term bullish momentum forcing a bullish breakout toward $2000, followed by a rejection from the bearish OB.

Another scenario that could unfold for Ethereum was a rejection from the range highs directly, but the presence of the imbalance above meant it was likely to attract the prices before reversal. The idea of rejection from the $2100 area can be somewhat risky for bears. This was because a breakout past the $2000 psychological level could see a rapid shift in sentiment and heavy demand could drive prices higher, with short liquidations fueling the rally as well.

Therefore, risk management would be extremely important.


Is your portfolio green? Check the Ethereum Profit Calculator


Lower timeframe bias was bullish due to significant demand

Ethereum [ETH] could stumble near $2100 despite bullish momentum, here's why

Source: Coinalyze

The one-hour chart from Coinalyze showed that the spot CVD has formed higher lows since 22 April. Despite the sharp pullback on 26 April, the CVD advanced higher. This indicated that ETH buyers were stronger and pointed toward a short-term rally.

The Open Interest showed that bullish speculators were not as enthusiastic as spot buyers. The OI rose noticeably over the past couple of days but remained in a downtrend, if we consider the past ten days.

Share

Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.