- The price action of Ethereum in the past three weeks showed large volatility and no clear trend.
- The psychological level at $1900 was retested as resistance in recent hours.
Ethereum [ETH] showed some conflicting signs on the higher timeframe charts. The asset has been on an uptrend in 2023 after the move above $1350, but the trend shifted bearishly in mid-April.
On 16 June, ETH dropped as low as $1626 before rallying to $1976 on 3 July. This signified a bullish structure- but is ETH ready to rally?
The lower timeframe picture was clearer. The 4-hour chart showed a strong possibility that Ethereum is preparing for the next big move. The price was in a phase of consolidation, but can the bulls drive another rally?
The rejection from $1978 saw selling pressure dominate
Source: ETH/USDT on TradingView
A range formation between $1843 and $1934 was highlighted in yellow. The brief breakout above this range in early July was quickly swatted down by the bears. Moreover, the OBV, which had been trending higher until then, declined.
Over the past week, the OBV continued to drop as the price dropped to the range lows. A candlewick to the $1826 mark on 7 July saw a quick reversal, which suggested that the bulls were not ready to give up on the range formation yet.
The RSI oscillated between bullish and bearish territory over the past few days to indicate the lack of a trend. However, on lower timeframes such as 1-hour, there was momentum for traders to profit from.
But, given the decline in OBV, the consolidation phase could be followed by a downtrend for Ethereum. Until the range lows are ceded to the bears, buyers can look to bid in the $1840-$1860 targeting the high at $1935.
The spot CVD remained flat despite Ethereum’s bounce from the range lows
Source: Coinalyze
On 7 July, after the dip below $1830, Ethereum prices recovered. At the time of writing, ETH was trading at $1885 after rejection from $1900. Even though it was a minor bounce, the spot CVD did not climb higher.
Nor did the Open Interest budge much. It remained flat over the past few days and reflected the lack of conviction from speculators. The lack of reaction on the OI despite a minor bounce for Ethereum suggested the bullish side could be weakened.
