Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
-The higher time frame remained bullish.
-The presence of an imbalance and a breaker can cause a strong reaction from the buyers.
Ethereum [ETH] passed a critical area of resistance in the $2000 area. The Shapella upgrade was followed by millions of dollars worth of ETH withdrawn by strikers. There were concerns that the Lido [LDO]and especially Celsius [USDC]could negatively impact Ethereum prices in the coming weeks.
Read Ethereum’s [ETH] Price Forecast 2023-24
Analysis of the price charts showed that the price action was strongly bullish and a good buying opportunity could emerge if Ethereum saw a small price drop. This is what buyers can look out for.
The confluence of the breaker and imbalance meant buyers will be interested in another test
Ethereum had a strong bullish outlook on the longer term price charts. The $2000 level has been a key resistance in the past and ETH has been trading below this region since June 2022. In August, the price attempted to break $2000 but was forced to reverse and formed a bearish order block (highlighted in red).
For the past few days, the bulls have been able to cruise past this bearish stronghold. Their strength was so great that it also left a large fair value gap (white box). There was a confluence between the fair value gap and the bearish order block, which is now expected to serve as a bullish breaker.
It was very likely that a retest of the $1950-$2020 region will see a strong bullish reaction from ETH on the charts. Monday’s high and low may help traders shape their bias for the week ahead. Longer-term investors next look to the $2400 level.
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Social dominance is on the rise, but the average coin age took a hit
Ethereum’s 90-day MVRV ratio was close to January’s six-month highs. With the price also above $2000, there were fears that a wave of selling pressure could emerge from profit-taking. The sleeping circulation statistic has not seen any major spikes in the past month. Traders can watch this statistic for signs of massive sales activity.
The average coin age has dropped over the past week. This indicated a greater movement of ETH between addresses, which could also be a result of the upgrade withdrawals in Shanghai. Social dominance increased and indicated an optimistic sentiment.
This post ETH bursts past $2000, here’s where buyers can look to re-enter
was published first on https://ambcrypto.com/eth-bursts-past-2000-heres-where-buyers-can-look-to-re-enter/