Ethereum price slammed on the brakes and halted its uptrend which crossed to $1,950 in July. Initially, the rejection was gradual, with ETH spinning at $1,920.
However, waves of bearish forces sweeping the market on Thursday caused Ethereum to tumble below $1,900 before holding support at $1,825.
As reported in Bitcoin’s price forecast, several economic indicators released this week did not sit well with investors, who are concerned that the Federal Reserve’s aggressive stance on inflation could plunge the US into severe inflation.
Ethereum price has recovered and is trading at $1,856 as of writing on Friday as bulls struggle to recoup about 3.5% of losses incurred in 24 hours.
Is Ethereum Price Ready for an Uptick?
Sentiment in the crypto market is still bullish, mainly due to interest from institutional investors, who are assuring retail investors of a possible breakout to $2,000 and $2,200.
Similarly, the robust buyer congestion zone above $1,820 implies further losses would be limited. Therefore, this dip to $1,825 could provide investors with an opportunity to buy ETH at a relatively lower price compared to the high of around $1,950 in July.
Four Hour ETH/USD Chart | Trade view
Traders looking for opportunities to gain exposure to ETH longs may want to make sure certain conditions are met. For example, the Moving Average Convergence Divergence (MACD) indicator must confirm a buy signal.
With the momentum indicator below the average line (0.00), traders would watch for the MACD line in blue to cross above the signal line in red. Such a signal could force more traders to bet on a rebound, especially after the drop to $1,825.
The Relative Strength Index (RSI) can also be used to further watertight the bullish narrative when the indicator returns from the slump to oversold territory, slightly below 30.
Meanwhile, a pause and hold above the immediate hurdle of the 200-day exponential moving average (EMA) would be necessary to validate the breakout. This move should be accompanied by an increase in trading volume as traders activate their buy orders.
Some traders may prefer to post conservative gains at $1,890, but those who are stubbornly bullish may want to wait for ETH to retest the $1,900 resistance and try to break out to $2,000 again. Other important levels to watch out for are the 100-day EMA (in blue) at $1,883 and the 50-day EMA (in red) at $1,904.
Ethereum Fundamentals Healthy and growing
Ethereum network growth has seen an interesting shift this week, with “new addresses being created at a higher rate,” Santiment reports. This development has sent the network growth benchmark to more than 550,000 newly created addresses.
📈 #EthereumThe growth of the network is somewhat quietly on the rise. New addresses are being created at a higher rate, signaling eventual market capitalization growth. We’ll keep an eye on this #bullish divergence as $ETH ranges just under $1,900. https://t.co/TpiOUGgYGl pic.twitter.com/B0SrlrsrmB
— Santiment (@santimentfeed) July 6, 2023
According to Santiment, the increase in the number of newly created addresses “is a signal for eventual growth in market capitalization”. In other words, it means an expected increase in demand for ETH as investors redouble their bullish efforts.
That said, buying into the dip could provide a profitable entry point as Ethereum starts another upswing with prices near $2,000 and $2,200.
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.
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This post Rebound to $2k Ahead?
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