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ETH Bears Take Control as $1.8K Support Seemingly Next to Test (Ethereum Price Analysis)

ETH Bears Take Control as $1.8K Support Seemingly Next to Test (Ethereum Price Analysis)

Ethereum’s price has been in a period of consolidation, with fluctuations that have not provided a clear directional bias for market participants. However, the cryptocurrency faces two critical support levels, the 100 and 200-day moving averages.

By Shayan

The Daily Chart

Following an impulsive bearish leg after failing to exceed the $2.1K level, Ethereum’s price entered a consolidation phase at $1.8K. However, during this phase, ETH has not shown a clear direction, with candles moving up and down.

Despite this, the price currently faces three crucial levels. The 100-day moving average at $1748 and the 200-day moving average at $1546 are primary supports, and the $2.1K price zone is a significant resistance. Given the bullish sentiment in the market, if there is another cascade, the 100 and 200-day moving averages are likely to buoy the price, spurring another upward movement.

Source: TradingView

The 4-Hour Chart

After dropping to the middle boundary of the channel, Ethereum’s price has entered a consolidation range evident in the 4-hour timeframe. This suggests a battle between the bulls and bears at this crucial price level, with buying and selling pressure appearing to be evenly matched.

Despite this, a downward break of the consolidation range would lead to Ethereum’s next stop at the $1.7K range, whereas a resurgence of the bull’s dominance over the bears would likely see the price attack the $2.1K resistance region.

Source: TradingView

By Shayan

Ethereum’s price has been trending upward since the start of 2023, with many investors regaining profitability. The Net Unrealized Profit/Loss (NUPL) metric reveals the total amount of profit/loss across all the coins, represented as a ratio.

This ratio can be interpreted as the proportion of profitable investors. Values over 0 indicate investor profitability, and a rising trend indicates an increasing number of profitable investors.

Given the recent uptrend in NUPL, it follows that more investors are achieving profitability, providing a bullish sentiment across the market. However, this could signal the beginning of a new bull market, and investors may soon realize their profits due to growing selling pressure, causing short-term corrections.

Source: Glassnode