Ethereum Price Prediction: ETH might create another opportunity for buyers to kick-start new uptrend


  • Ethereum price has tagged a resistance level at $2,552 but failed to breach through.
  • This rejection has caused a potential lower high to be formed, indicating a possible downswing.
  • A bounce from the 62% or the 70.5% Fibonacci retracement levels at $2,177 and $2,077, respectively, would be an excellent place to start a new uptrend.

Ethereum price is currently trading below a critical resistance level and is trying to breach past it. A decisive close above the swing high on June 9 will create a higher high and signal the start of an uptrend.

However, a failure to generate a new high will lead to a sell-off, which will allow the bulls to recuperate and give the upswing another try.

Ethereum price at crossroads

Ethereum price has created three lower highs and lower lows since June 3, indicating a downtrend in progress. Although ETH appeared to have formed a bottom on June 12 and 13, the rally that originated here seems to have failed.

Rejection at the resistance level at $2,552 and the lack of buying pressure have played a role in preventing the rise of ETH price.

While the buyers still have a chance to band together and propel it higher, a potential spike in selling pressure that pushes Ethereum price to produce a decisive 4-hour candlestick close below the 50% Fibonacci retracement level at $2,319 will invalidate the bullish outlook.

In such a case, the smart contract token is likely to dip to retest the 62% or the 70.5% Fibonacci retracement levels at $2,177 and $2,077, respectively.

In a highly bearish case, the 79% Fibonacci retracement level at $1,976 might be tagged as well. Therefore, investors need to exercise caution for price swings below the barrier mentioned above.

A bounce from either of the crucial support floors would be a perfect place for the buyers to bid, leading to a build-up of buying pressure. Therefore, investors can expect a new uptrend to evolve here.

The bullish momentum that evolves at either of these levels might target the range high at $2,909.

ETH/USDT 4-hour chart

ETH/USDT 4-hour chart

The number of active addresses for Ethereum has dropped from 764,000 to 505,000 between May 13 to date. This 34% decline indicates that investors are becoming scarce and are uninterested in ETH at current price levels.

Moreover, the past week alone saw more than a 3% decline in the daily active addresses from roughly 520,000 to 505,000, suggesting that market participants might either be booking profits or reallocating their funds.

ETH daily active addresses chart

ETH daily active addresses chart

The 365-day Market Value to Realized Value (MVRV) model suggests more room to the south, further backing the initial bearish outlook mentioned above. This fundamental index tracks the average profit/loss of investors who purchased ETH over the past year. A high MVRV number indicates that most users are in profit, revealing that these market participants might sell their holdings to realize gains, thereby adding selling pressure.

Currently, the 365-day MVRV has dropped from 51% on June 1 to 39.3% today, suggesting that 39% of the investors are still in profit and might sell their tokens and potentially add to ETH’s woes.

ETH 365-day MVRV chart

ETH 365-day MVRV chart

While all of these on-chain metrics support the initial downswing, the percentage of ETH accumulated by addresses holding 1,000,000 to 10,000,000 tokens has risen from 17% on May 22 to 17.8% as of this writing.

Although the increase was small, it is an interest shown by whales, which represents a bullish outlook for ETH.

While the short-term outlook looks weak, a dip into the 62% or 70.5% Fibonacci retracement level at $2,177 and $2,077, respectively, would allow the buyers an opportunity to accumulate ETH at a discount and propel its market value higher. 

However, if Ethereum price produces a decisive 4-hour candlestick close below $1,976, it will invalidate the upswing and kick-start a new downtrend that could tag the range low at $1,728.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Cryptos enter buy zone

Bitcoin price has made a significant dip this week, dropping more than 11% and returning levels not trades since August 2021. Etheruem price hits new three-month lows, threatens a return to the $2,300 value area. XRP price looks determined to push lower to the $0.65 support zone before generating another bull run.

More Cryptocurrencies News

Loopring, NEAR and Harmony among the biggest losers as crypto bloodbath intensifies

Altcoins suffered double-digit losses in the recent crypto bloodbath. The recent spike in altcoin prices was followed by a correction for Loopring, Harmony and NEAR. The losses nursed by altcoins were accompanied by a wave of selling pressure across exchanges. 

More Cryptocurrencies News

Shiba Inu price set to crash by 70% as critical support weakens

Shiba Inu (SHIB) price continues to be controlled by bears after the dead-cat bounce in stock markets yesterday evening. With the Nasdaq closing sharply lower, giving up earlier gains, cryptocurrencies are being dragged into a selloff on its coattails, and bearish headwinds  persist. 

More Shiba Inu News

Crypto.com Price Prediction: CRO ready to return to $0.25

Crypto.com Coin (CRO) is withstanding the current market headwind not that great. It has already lost over 50% of its value from the highs, and CRO could be set to lose another 30% as essential support is being breached.

More Crypto.com News

Bitcoin: BTC may capitulate to $30,000

Bitcoin price has dropped considerably over the last three weeks. The recent downswing has made things worse for BTC and hints that a steep correction could be on its way.

Read full analysis

BTC

ETH

XRP