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Ethereum: These indicators encourage you to go short

2min Read

Ethereum bulls were unable to defend the $1920 level on 17 July, and sentiment has swayed further in favor of the bears over the past 24 hours.

Ethereum traders encouraged to go short by these indicators

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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.

  • The bearish short-term order block at $1920 showed that sellers had the upper hand.
  • Ethereum is expected to slide to range lows of $1840 after an unsuccessful breakout last week.

Ethereum [ETH] prices brushed the $2000 mark yet again on 14 July but saw a rapid decline as sellers took control. Though the network has the largest base of fee-paying users, it was behind other networks in terms of daily active users.

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

An earlier report highlighted why a drop below $1950 presented a bearish case in the short term. The continued decline in ETH prices over the past 24 hours highlighted the growing bearish sentiment – and presented traders with an opportunity to short the token.

An ETH retest of short-term support at $1920 could be interesting

Ethereum traders encouraged to go short by these indicators

Source: ETH/USDT on TradingView

Bitcoin [BTC] and Ethereum both posted large gains on 13 July but were unable to hold on to the gains. While BTC showed some hope of a bounce, the price action of ETH hinted at further losses. The first indication was its immediate withdrawal back into the month-long range (yellow).

To add to the idea of seller dominance, over the past three days, Ethereum bulls were unable to hang on to the $1920 mark. This was accompanied by a sliding OBV, which showed increased selling pressure.

The RSI has stayed below the neutral 50 line since 15 July on the 2-hour chart to show bearish momentum has remained dominant in recent days.

A retest of the H2 bearish order block at $1910 will offer a selling opportunity. Short traders can target range lows at $1845 to book profits. Invalidation of this idea would be a move back above the $1940 level, just above the range highs.

Spot CVD agreed with the bearish findings from the OBV

Ethereum traders encouraged to go short by these indicators

Source: Coinalyze

Is your portfolio green? Check out the Ethereum Profit Calculator

Over the past 24 hours, Ethereum has slowly slid lower from $1918 to $1894. At the time of writing, it saw a bounce to $1904, but the presence of the H2 order block meant further losses could be expected. As prices slid lower, Open Interest increased from $5.09 billion to $5.19 billion.

This was a sign of strong bearish sentiment in the market as speculators actively shorted the asset. The spot CVD has also trended downward to underline the lack of demand. Taken together, the price action and indicators showed sellers were winning the battle.


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.
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