Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
The higher timeframe bias was bearish, but there were good chances of an increase from USD 1760. Due to the lack of demand in May, bulls had to be cautious.
A recent analysis from Ethereum highlighted that the USD 1880 area represented a bearish order block and it could serve as resistance. In the past 48 hours, this zone tested as resistance and rejected ETH. The higher time frame market structure was also bearish.
Read Ethereum’s [ETH] Price Forecast 2023-24
The number of non-zero ETH addresses increased and the supply of top addresses has also increased dramatically over the past month. Nevertheless, the supply on exchanges also increased.
Will the bulls or the bears win this extended skirmish?
A short-term formation showed what traders and investors can watch out for
In the past two weeks, Ethereum has traded within a range that stretched from $1740 to $1880. The midpoint of this range at $1810 has served as support and resistance in a low time frame.
At the ends of this range were order blocks that the price has respected so far.
The bullish order block (cyan) stretched from $1690 to $1770 and has already been tested in May. Another test could take place in the coming days. In May, the OBV slipped below a support level marked on the chart and has tested the same as resistance.
This showed that the market was dominated by the sellers. Moreover, the RSI was also in bearish territory. Together they indicated that further losses were likely.
In the south, the $1700, $1632 and $1500 are likely to be significant levels. Ethereum bulls could take a small jump from these levels, but the overall trend remained bearish.
To change this, ETH bulls need to push prices above $1880 and break the bearish order block.
Declining funding rates signaled shifting market sentiment
Coinalyze’s short-term charts showed that the sentiment was solidly bearish. Open interest fell dramatically over the past two days following the retest of the $1860 area and subsequent downward movement.
The funding rate remained positive, but ticked lower alongside the drop in OI. Together, they showed that short-term sentiment was in favor of the sellers.
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Another point investors should keep in mind is the fact that the $1700-$1800 region acted as a firm resistance from September 2022 to March 2023. Will the bears take control of this zone just two months after handing it over to the bulls?
As Bitcoin is also expected to find support at $24,000-$25,000, it was possible that Ethereum could create panic in the market before rising higher in the coming months.
This post Can Ethereum Bulls Hit $1880?
was published first on https://ambcrypto.com/can-ethereum-bulls-make-it-past-1880/