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Here’s how Ethereum traders can navigate short-term trends

2min Read

Ethereum has trended higher since January but has leaned bearish since May, and the lower timeframe range formation suggested buyers could be losing strength.

Here's how Ethereum traders can navigate short-term trends

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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 price action of Ethereum in the past three weeks showed large volatility and no clear trend.
  • The psychological level at $1900 was retested as resistance in recent hours.

Ethereum [ETH] showed some conflicting signs on the higher timeframe charts. The asset has been on an uptrend in 2023 after the move above $1350, but the trend shifted bearishly in mid-April.

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

On 16 June, ETH dropped as low as $1626 before rallying to $1976 on 3 July. This signified a bullish structure- but is ETH ready to rally?

The lower timeframe picture was clearer. The 4-hour chart showed a strong possibility that Ethereum is preparing for the next big move. The price was in a phase of consolidation, but can the bulls drive another rally?

The rejection from $1978 saw selling pressure dominate

Here's what the short-term Ethereum price action reveals about the longer-term trend

Source: ETH/USDT on TradingView

A range formation between $1843 and $1934 was highlighted in yellow. The brief breakout above this range in early July was quickly swatted down by the bears. Moreover, the OBV, which had been trending higher until then, declined.

Over the past week, the OBV continued to drop as the price dropped to the range lows. A candlewick to the $1826 mark on 7 July saw a quick reversal, which suggested that the bulls were not ready to give up on the range formation yet.

The RSI oscillated between bullish and bearish territory over the past few days to indicate the lack of a trend. However, on lower timeframes such as 1-hour, there was momentum for traders to profit from.

But, given the decline in OBV, the consolidation phase could be followed by a downtrend for Ethereum. Until the range lows are ceded to the bears, buyers can look to bid in the $1840-$1860 targeting the high at $1935.

The spot CVD remained flat despite Ethereum’s bounce from the range lows

Here's what the short-term Ethereum price action reveals about the longer-term trend

Source: Coinalyze

How much are 1,10,100 ETHs worth today?

On 7 July, after the dip below $1830, Ethereum prices recovered. At the time of writing, ETH was trading at $1885 after rejection from $1900. Even though it was a minor bounce, the spot CVD did not climb higher.

Nor did the Open Interest budge much. It remained flat over the past few days and reflected the lack of conviction from speculators. The lack of reaction on the OI despite a minor bounce for Ethereum suggested the bullish side could be weakened.


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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