Can Ethereum stay above the $1650 price level

Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion.

• The upper timeframe value motion of Ethereum confirmed a bearish construction.
• A bounce might develop after such a big drop, making the $1780-$1800 an space of curiosity for bears to defend.

On 6 Could, Ethereum [ETH] fashioned a decrease excessive at $2019, a degree that was retested as resistance on 14 July. After this retest, the asset has trended downward. The latest drop on 17 August was adopted virtually instantly by excellent news.

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ETF purposes for Ethereum have been prone to be accredited, in keeping with a Bloomberg report. Might this optimism gas an ETH restoration? The worth was at a assist zone that stretched again to mid-January.

The $1170 and $1630 ranges have been each breached, exhibiting bearish intent

Supply: ETH/USDT on TradingView

On the each day value chart, Ethereum flipped the market construction to bearish on 2 August. ETH bulls managed to defend the $1820-$1850 assist zone since mid-June, however they have been lastly overcome. The latest wave of promoting introduced ETH as little as $1550 on 17 August on Binance.

The RSI and OBV fell decrease and mirrored bearish momentum and enormous promoting strain. Whereas a 1-day buying and selling session had not but closed under $1626, the wick to $1550 signaled bearish dominance.

Due to this fact, merchants can await a transfer upward to promote ETH in anticipation of rejection from a degree of resistance overhead. The $1740-$1780 space had been necessary in mid-June however did not staunch the promoting strain throughout the latest stoop. A retest of this space and one other transfer down was doable.

The rising imply coin age recommended promoting exercise was not as robust because it appears

Supply: Santiment

The age consumed metric final noticed a big spike in late July. The dearth of exercise in latest days recommended that the promoting exercise was not accompanied by giant quantities of ETH leaving the addresses of holders.

How a lot are 1, 10, or 100 ETH value right this moment?

The imply coin age metric continued to pattern greater. Collectively, it recommended that accumulation was nonetheless in progress regardless of the volatility.

The MVRV ratio confirmed the asset was undervalued. The previous few days additionally noticed notable alternate outflows, supporting the concept of accumulation throughout the drop. The worth motion favored the sellers however a bounce might happen within the coming days.