Ethereum price bulls are doing everything they can to limit losses after the $1,900 support collapses. The token powering the largest smart contract token has remained barely unchanged over the past 24 hours, trading at $1,870. Despite the narrowing trading range, a trading volume of $6.5 billion has been posted, with the market cap slightly down to $224 billion.

Ethereum price charts show 18% bullish move

Ethereum price has formed an inverse head-and-shoulder (H&S) on the daily chart with a possibility of a breakout of 18% towards USD 2,372.

As a technical chart pattern, the inverse H&S gives a bullish signal to Ethereum traders. It is born through three troughs, the middle one being the deepest – the ‘head’, and the ‘shoulders’ flanking it more shallowly.

A bullish move would be confirmed when this ‘neckline’ breaks, investors often expect an upward swing in price, equal to the height of the extrapolated pattern above the breakout point, $2,000 in the case of Ethereum.

The path of least resistance is down for now, with greater risk lurking in the shadows if bulls lose the support provided by the 50-day exponential moving average (EMA) (in red).

While those declines may bounce off the 100-day EMA (in blue), the current technical picture suggests that overhead pressures may rise in the coming days.

In particular, the Moving Average Convergence Divergence (MACD) adds credence to the bearish outlook after sending a sell signal. Ethereum’s drop below USD 1,900 may have accentuated the call to sell, which manifested itself with the MACD line in blue crossing below the signal line in red.

The Relative Strength Index (RSI) reinforces the bearish outlook as it slides below the midline.

With that in mind, short traders would look for lower profit targets, for example the 200-day EMA (purple) and the primary support between USD 1,630 and USD 1,700.

Ethereum Staking Remains Attractive

Investors have fully embraced Ethereum staking in recent months, both on the primary blockchain and liquid staking platforms. According to on-chain insights shared by Token Terminal Intern on Twitter, “total assets through liquid-staking protocols are hitting ATH, despite Ethereum bringing -61% off the top.”

Ethereum Liquid Strike | Source Token Terminal Internal

Ethereum staking eventually started to gain traction after the initial withdrawals that followed the Shapella upgrade. Liquid staking platforms like Lido continue to maintain their dominance following the protocol upgrade that allowed investors to withdraw their staked Ether for the first time since moving to the PoS consensus algorithm.

The increase in staking implies that investors are optimistic about Ethereum’s future and willing to HODL the token in hopes of a rally back to the ATH. Staking also contributes to reducing the supply of Ethereum on exchanges, which has shrunk significantly. If demand for Ethereum rises, we are likely to witness a breakout above USD 30,000.

John is a renowned crypto analyst and journalist, providing expert insights into both broad and focused aspects of the digital asset market. As a steadfast reporter, he keeps his audience abreast of the latest crypto news, delving into topics such as price trends, on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the ever-evolving metaverse.

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.



This post Ethereum Price Charts Signal 18% Up; Liquid Staking will reach ATH in 2023

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