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Ethereum – A new breakout on the cards?

2min Read

Ethereum [ETH] starts the week on positive note, with BTC back in $27k, is the rally sustainable?

Ethereum retests range high - Can bulls initiate a breakout

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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 posted over 2% gains as of press time. 
  • Long positions were discouraged. 

Ethereum [ETH] started the week on a positive note, posting about 4% gains, since Monday (22 May). At press time alone, the gains stood at 2.2% on a daily basis, with Bitcoin [BTC] comfortably back at $27k. 

Is your portfolio green? Check ETH Profit Calculator

Source: Coin360

In a recent development, Vitalik echoed concern about pushing Ethereum on a multi-purpose path. Although the price didn’t react to his concerns, here is the state of ETH’s short-term prospects.

The rally eased at the short-term range high

Source: ETH/USDT on TradingView

Since 8 May, ETH has been oscillating between $1740 – $1873. At press time, it retested the range of $1873 but left behind an FVG (fair value gap) of $1825 – $1846 (white). 

The FVG could hold further drop, giving bulls a chance to retest or smash the range high. A bullish breakout could set ETH to reclaim the $1900 and $2000 psychological levels. 

However, a drop below the FVG zone could ease at the mid-range of $1807. A session close below the mid-range could tip sellers to drag ETH to $1784 or range low of $1740. 

Meanwhile, the RSI value was 67, highlighting an increased buying pressure in the past few hours. Similarly, the OBV increased confirming improved ETH volume and demand. 

Longs discouraged

Source: Coinglass

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

As per Coinglass, longs suffered more liquidations at press time, with about $300k worth of positions wrecked. The trend could undermine a strong retest of the range high as the data paints a bearish outlook in the futures market. 

Similarly, ETH long/short ratio showed sellers had a little upper hand at press time, commanding a dominance at 52.98% on the 4-hour timeframe. 

As such, more upside moves could delay for a while before ETH attempts to break above the range high. BTC’s movement could offer more clarity on the direction. 

Source: Coinglass


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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