Should Ethereum traders be cautious after the bounce above $1700

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

• The market construction and development remained bearish.
• Ethereum may drop towards $1500 if the bulls fail to carry on to $1700 over the following week.

Ethereum had a bearish market construction on the every day timeframe. Buyers had been pulling Bitcoin and Ethereum off of centralized exchanges and placing them in DEXs or self-custody and shopping for stress was depressed, though the platform’s gaming sector noticed a lift.

Learn Ethereum’s [ETH] Value Prediction 2023-24

Therefore ETH bulls can look ahead to a possibility, whereas sellers can search for a powerful bounce earlier than shorting the asset. Merchants will seemingly discover alternatives, however the every day timeframe bias remained bearish in response to the worth chart of the king of altcoins.

Ethereum was forming a bearish divergence on the chart as purchaser conviction seemed weak

Supply: ETH/USDT on TradingView

Ethereum continued to development downward on the every day timeframe. The current decrease excessive of this downtrend was at $1778 with an aggressive studying of the market, or at $1898 with a extra conservative view. Subsequently, these are the degrees that ETH bulls should breach to indicate that bulls had some management out there.

Such a state of affairs appeared unlikely on the time of writing. The OBV was simply above the Could lows however trended downward over the previous three weeks. The RSI was under impartial 50 to indicate bearish momentum. The RSI may kind a bearish divergence with the worth, highlighted in cyan, if ETH doesn’t push previous $1778 inside the subsequent week.

The $1750-$1790 space served as assist from early April however was flipped to resistance only a few days in the past. A retest of this area may see rejection, though quick sellers should watch out for a liquidity seize within the $1800 zone.

The imply coin age has descended alongside the worth, sentiment additionally suffers

Supply: Santiment

The 90-day imply coin age was in an uptrend from late April to early June. On 4 June it reached a 3-month excessive however started to wane thereafter. The previous ten days confirmed intense promoting stress throughout the market, however the metric picked up previously 12 hours.

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

In the meantime the MVRV confirmed holders had been at a loss and the weighted sentiment was firmly in unfavorable territory. They mirrored the sentiment of buyers, and the argument that ETH is undervalued at press time holds water. But patrons have to be cautious because the development was towards them and might look ahead to extra favorable winds.