Cryptocurrency

Ethereum: Traders can take short positions here with a stop-loss at or just above…

Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought-about funding recommendation.

Bitcoin continued to commerce inside a vary from $28.7k to $30.6k, whereas a lot of the remainder of the altcoin market was in a downtrend. Ethereum managed to stave the bears off up to now two weeks after a sturdy transfer down from the $3000 degree earlier in May. Over the day gone by, the sellers seized the initiative and compelled ETH beneath a assist degree of $1960.

The market construction for Ethereum on the decrease timeframe charts was bearish and pointed towards additional losses.

ETH- 1 Hour Chart

Source: ETH/USDT on TradingView

On the decrease timeframes equivalent to hourly, Ethereum appeared to kind a vary between $1900 and $2120. However, over the previous week, sellers had been in a position to power the bulls to retreat even at the $2080 and $2060 ranges. This steered that purchasing stress had dried up considerably.

The Visible Range Volume Profile confirmed the Value Area Highs and Lows (grey) to lie at $2242 and $1733, with the Point of Control at $1967. This degree was crucial degree of assist for bulls to carry on to, and it had confluence with a longer-term horizontal assist degree at $1963. However, over the previous couple of days, bears have gathered sufficient power to power the worth beneath this assist space.

The $1750-$1950 (highlighted in cyan) has been a zone of demand from July 2021, and the worth has dropped as far south as $1710 to check a assist degree as effectively. Therefore, within the short-term, a bounce to $1800-$1840 may happen, adopted by one other transfer downward.

Rationale

Ethereum bulls unable to defend the $1900 area, could $1500 be the next stop?

Source: ETH/USDT on TradingView

The RSI confirmed a bullish divergence (orange) the place the worth made decrease lows whereas the momentum indicator made greater lows. This bullish divergence hinted at a pullback towards $1840, however the pattern stays bearish. A hidden bearish divergence can be used to sign a continuation of the previous downtrend.

The OBV slipped beneath assist it has held since 13 May, and this meant that promoting quantity has been dominant. The CMF dropped under -0.05 as soon as once more to point out heavy capital movement out of the market.

Conclusion

The bullish divergence meant a bounce was imminent, and the $1800-$1840 space could possibly be a place to enter short positions with a stop-loss at or just above the $1950 mark. To the south, $1710 and $1555 are assist ranges that ETH is prone to descend to within the coming days.

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