Ethereum [ETH] witnessed very low volatility in the past few days. Since 20 December the price stuck to the $1,213 mark. This can be attributed to the holiday season. Yet, crypto markets never sleep, and ETH traders can look out for a move into an area of significance.
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For instance, $1,245 and $1,350 are two areas where the bulls will run into a large number of sellers. With Bitcoin also experiencing a muted period of sideways trading, what direction will the trend be when one emerges?
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Ethereum reclaims mid-range but could see a dip once more to fill large orders
Source: ETH/USDT on TradingView
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The market structure shifted to a bullish bias on lower timeframes when ETH rise from $1,160 and was able to rise above the $1,190 mark over the past week. However, the trading volume and the volatility have been quite low in recent days. This meant that the price could see a large deviation north or south in search of liquidity before a quick reversal.
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This can go either way. ETH could rise to tag the H12 breaker at $1250 before plunging to $1160 once more. The reverse was also equally likely. Therefore a trader can wait for a trend to establish itself. The Relative Strength Index (RSI) has been close to the neutral 50 mark in recent days to indicate momentum favored neither the buyers nor the sellers.
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The Fibonacci retracement levels plotted were also important. In the next few days, a move above the 38.2% level or below the 61.8% level, followed by a retest, could serve as a trigger for a trader to target the respective extremes of the range (white). The range high is at $1,350 and the low is at $1,073.
Source: Santiment
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The Market Value to Realized Value (MVRV) ratio (30-day) fell into negative territory after Ethereum dumped from $1,340 to show that the asset was undervalued on shorter time scales. The 90-day mean coin age also took a hit at that time. Since then, the mean coin age metric has been on the rise. This showed some accumulation.
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The weighted sentiment also shot higher recently, but there was no notable response from the price yet. In the past, a rising sentiment was not necessarily bullish for the price either. Instead, traders can be wary of a strong surge in the MVRV ratio as it can signal holders are ready to take profits.
