Eth price received a rejection from $1916 and has started to drop toward the recent support of $1800. The Ethereum price has recently escaped from the descending triangle pattern and the current bearish move might be a retest of the triangle. Since the beginning of 2023, the Eth price has been in an uptrend creating higher highs and higher lows. The annual high is at $2141.54.
The cryptocurrency has been squeezing after the creation of the annual high but the descending triangle did not lead to a downward fall. If Bulls can push Eth’s price above $1916, there is a higher probability for the price to retest the $2000 level. While on the other hand, if Eth’s price shatters the recent support, it might fall toward the $1711 region which would cause a downfall of roughly 4.95%.
The dormant cryptocurrency whale that purchased 8000 Ethereum back in 2015 during Ethereum Initial coin offering has come back to life. The whale has transferred 8000 ETH worth nearly about $15 Million to a different address. The wallet owner purchased 8000 Eth at $0.31.
This move is potentially indicative of the whale’s optimistic outlook toward Ethereum. Earlier in 2023, Ethereum Whale which was also inactive since the ETH ICO staked $7.4 Million.
Ethereum Might Be the New Catalyst
In the month of April, over 143,830 Ether, worth approximately $250 Million has been burned. This puts Ethereum into a deflationary stage and a negative supply growth of -1.54% annually. It is estimated that nearly 2,441,000 will be burned in 2023 worth over $2.4 Billion.
After Ethereum’s transition from proof of work to proof of stake, the supply-demand economics of Bitcoin and Ethereum are likely to diverge. The market requires a new catalyst to drive prices upwards and that might be Ethereum.
Will Eth Price Retest the $1800 Level?
ETH price trades above 20,50,100 and 200-day EMAs indicating bullish momentum in the price. The Chaikin money flow score is 0.18 indicating that even though the current candle has turned bearish, there is still strength left in the market. RSI trades at 52.75 after receiving a rejection from the 60 mark indicating an increase in bearish participation in the market.
Eth’s price crossed the upper band and is currently witnessing a short-term pullback which might extend to the $1800 level. The long/short ratio is 0.93 with 48.45% longs and 51.55% shorts indicating rising bearish sentiment in the market in the last 24 hours.
Conclusion
The market structure and price action for Ethereum indicate that the price might be experiencing a pullback to the $1800 level before rising further upwards. The technical indicators are also favoring the selling side.
Technical levels
Major support: $1800 and $1711
Major resistance: $2000 and $2123
Disclaimer
The views and opinions stated by the author, or any people named in this article about Ethereum price, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/31/ethereum-price-prediction-eth-price-retraces-toward-1800/