Ethereum prices likely to fall below the $1815 support
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Ethereum volume indicators showed selling pressure was dominant, but the on-chain metrics showed otherwise.
- Combined with the lack of a strong trend, a bullish resurgence was possible in the coming weeks.
Ethereum [ETH] saw a sizeable drop in its volatility in recent months. While investors with a higher time horizon can see this as a positive development, traders would be more inclined to lament the lack of volatility.
Read Ethereum’s [ETH] Price Prediction 2023-24
Technical indicators showed that there was steady selling pressure behind the asset over the past month. Analysis of the price action outlined areas where a bullish revival could occur. Here’s what traders can be prepared for.
Ethereum is stuck within a short-term range but the longer-term outlook remains bullishThe 1-day chart showed that ETH has a bearish market structure. This came after ETH fell below the $1833 level on 1 August. On lower timeframes, ETH has been in a steady downtrend since mid-July.
However, the trend on the 1-day chart was not yet bearish. There was no strong trend at the moment but the bulls are favored in the coming weeks. This was because the Ethereum rally to $2029 in July showed bullish intent.
The Fibonacci retracement levels showed that the 61.8% and 78.6% retracement levels at $1780 and $1712 will likely serve as support levels. The FVG (white box) on the daily chart at $1770 added confluence. These levels would be the ones to watch out for if ETH sank below $1815, a level the bulls have defended over the past two weeks.
Yet, the OBV has been in decline over the past month. The CMF showed no notable influx of capital into the ETH market since early July. The RSI showed momentum was neutral but slightly inclined toward the bears. Therefore, it was unclear if ETH bulls would succeed in defending the $1770 demand zone.
On-chain metrics showed selling pressure did not rise in AugustThe age consumed metric had a significant spike on 31 July, indicating large ETH movements. It showed selling pressure was likely present, but the metric has not surged notably since then.
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The 90-day MVRV ratio has also trended downward. Its negative value showed the asset was slightly undervalued.
The funding rate remained positive on Binance. Over the past few days, the exchange flow balance highlighted a large amount of Ethereum leaving exchanges. This signaled a good likelihood of the tokens going into storage, and pointed toward accumulation.