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ETH Price Analysis: Near Term Relief Rally Beyond $2K, Supply of Ethereum on Exchanges Hit Lowest Since Nov 2018

  • ETH has stumbled in its attempt to break over the $2,300 barrier
  • After falling lower, traders expect a near term relief rally beyond $2k as shorts cover positions to buy back
  • The percent of $ETH held on exchanges hit lowest since Nov 2018

The overall cryptocurrency markets tend to consolidate towards the end of each month, only to climb again at the start of the next. However, after a five-day rally that saw Ethereum reach $2,288 in the middle of the week, the second cryptocurrency began to lose some of its shine. The ETH/USD pair has stumbled in its attempt to break over the $2,300 barrier. ETH has been on the back foot for much of the day, retreating to the $2,017 handle and trimming its weekly gains versus the dollar from 15% to about 12%. After falling lower, traders expect a near-term relief rally beyond $2k as shorts cover positions to buyback. At the time of this post, the Ethereum spot price is down 1.14% on the day while trading at $2,095. According to Santiment, the number of Ethereum holders continued to create history in early July, as the percent of $ETH held on exchanges hit the lowest since Nov 2018. The likelihood of a future significant selloff is reduced after falling below 18 percent for the first time in 31 months.

Key Levels
Resistance Levels: $2,800, $2,500, $2,300
Support Levels: $2,000, $1,700, $1,500

ETH/USD Daily Charts: Ranging

ETH/USD Daily Chart

As seen on the daily charts, volatility has risen in recent days, suggesting the conclusion of a multi-week consolidation period. As the market makes a final choice on which way to go, the moving average (MA 200) at $1,955 holds beneath as a key support zone. The moving average (MA 50) has been confirmed as resistance by the market on June 3.

While sellers continue to foster the bearish trend, the ETH/USD pair is strengthening above the $2,000 level. Moreover, the MA 200 slope has gone horizontal, indicating that buyers are battling back. Early upside limitations could emerge from the MA 50 around $2,500, restricting the upside advance if buying interest increases.

ETH/USD 4-Hour Chart: Ranging

ETH/USD 4-Hour Chart

Ethereum traders are pushing for a sustained rebound from the short-term moving average (MA 50) as the second cryptocurrency continues to face technical difficulties in the short term. The 4 hour time frame reveals that the ETH/USD pair is constrained between MA 50 and MA 200. While a breakout higher is still possible, with the $2,000 support level holding firm.

Overall, the level of selling on the spot market is lower than the volume of buying, which is a positive sign. Only when the ETH/USD pair is trading over $2,000 is it positive; major resistance is identified between $2,200 and $2,300. Sellers may test the $1,900 and $1,800 levels if the ETH/USD pair goes below $2,000.

Note: Kryptomoney.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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