Connect with us
Active Currencies 14015
Market Cap $2,563,457,896,830.10
Bitcoin Share 51.14%
24h Market Cap Change $2.71

Ethereum: Is rejection at $1924 short-lived?

2min Read

The 12H timeframe price chart of Ethereum showed the short-term bullish dominance with declining exchange supply hinting at further gains.

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.

  • 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.


Is your portfolio green? Check the Ethereum Profit Calculator


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

Ethereum price chart on dark background

Source: ETH/USDT on Trading View

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

Ethereum metrics on dark background

Source: Santiment


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.

Share

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.
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.