ETH price might be on a rally’s cliff, and its value may decline drastically if crypto investors start impulsive-selling or proceed to book profits. Keep in mind that such cases might send ETH to where it was in May.
A Reversal in Ethereum Price?
Ethereum has struggled to maintain upward trends by around 53% from the 19th May downs at $1,850. Also, the asset has increased by roughly 65% from the $1,730 low on May 23. However, the recovery seems undone since it is vulnerable with MRI’s (Momentum Reversal Indicator) preemptive top signal as a yellow arrow pointing down on the 6-hr chart.
With this technical formation, you can expect a reversal signal forecasting a 1-4 candlestick correction. That is if the upward trend continues.
Another thing threatening ETH is the bearish crossover resulting from the 50, 6-hr SMA ($2,994) moving under the 100, 6-hr SMA ($3,289).
With all that, what can you expect as an Ethereum investor? Well, the smart contract asset might retest the $2,153 upper restriction demand level with a 25% retrace. ETH value would likely retest the $1,850 19th May low.
Another thing adding weight to the bearish attitude in the ETH network is the decrease of whales holding assets valuing from 1,000,000 and 10,000,000 ETH by 11%. However, the particular holders offloaded their holdings as the ETH price was around $4,000 in early May. As a result, their whales reallocated their money or booked their profits since 9 May.
An increase in ETH supply on exchanges to 21.42 million ETH from 20.81 since May 19 is another aspect promoting the ugly outlook in the Ethereum market. The 3% gain indicates optimism by network investors on ETH performance. That might motivate them to sell.
As of now, ETH’s price lacks a bearish attitude, and investors might expect the altcoin crash. However, an increase in bid orders would relieve the skepticism above.
However, in an event where bulls can keep ETH price over $3,289, they will invalidate the bearish momentum. Under that, Ethereum may uptick 4%.
You will have to agree that Ethereum is among the cryptocurrencies with high volatility at the moment. However, given conditions might normalize things. What do you think?