- Ethereum price shows an uptick of sellers' transactions on the Volume Profile Indicator.
- 10% of Ethereum circulating supply has been staked by investors suggesting optimism for Ethereum 2.0.
- Invalidation of the downtrend is a breach above the $200-week moving average at $1,200.
Ethereum price could commence another liquidity hunt targeting $950. The bulls will need to step in soon to alter the bearish narrative, as market sentiment alone is failing to reach higher targets of anticipated bullrun.
Ethereum price needs to show support soon
Ethereum price shows early evidence of withdrawal from the market. Last week's trading session captured a 14% incline in price. The trade setups’ follow-up thesis mentioned that moving to break even was vital, and initial evidence to close positions would be a breach of the newly found ascending trend line. The trendline was supportive from July 5 to July 9 and was breached over the weekend near the $1225 levels. The 200-week moving average provided additional support just below $1,200 and failed to hold.
Ethereum price currently trades at $1,145 as the bears have pierced through both barriers with an uptick in volume. What many traders may have thought was just a profit-taking consolidation turned out to be a full-on bearish blitz. At this point, It is hard to believe that the bears won't be able to grab liquidity at last week's entry-level of $1,122. A breach of this level could catalyze another retest of sub-$1,000 price levels in the short term.
ETH/USDT 3-Hour Chart
The bearish technicals presented, come amidst conflicting market sentiment. The decentralized intelligent contract token has had the lowest gas fees in the last two years. Additionally, long-term investors have a significant interest in Ethereum 2.0, also known as "Serenity." More than 10% of Ethereum's total circulating supply has been deposited into a staking pool, a pledge from investors not to sell the Ethereum price for short-term gains.
Still, the technicals do not lie. If the $1,100 is breached, a sub $1,000 Ethereum price will be inevitable. The next significant bullish barrier lies in the $950 region established in May.
Invalidation of the bearish trend is a close above the 200-week moving average, currently priced at $1,200. If the bulls can conquer this barrier, they could trigger an additional rally towards $1,500, resulting in a 30% increase for the ETH price.
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.