Ethereum price is stuck in a wide consolidation zone ranging between $1790 and $1910 since mid-May. In March, Eth price gained bullish momentum rising from the support level of $1420. This move caused a rise of approximately 50% and led to creation of $2141.54 level. After forming the high, the price gained bearish momentum falling to $1790.
If bulls can push price above the immediate resistance of $1910, there is a possibility for the price to retest the $2000 level. If price can rise above $2000, it can easily head toward the annual high of $2141.5. The price needs to gain bullish momentum for a potential breakout. On the other hand, if bears are able to shatter the recent support of $1790 level, the next target for price is $1700 which would mark a potential loss of 5%.
Investor Staking Ethereum
Ethereum price witnessed a rebound as investors feel Ethereum to be a safe option amid a lawsuit filed by Securities and Exchange Commission, United States against the major crypto exchanges.
On-chain data witnessed an increase in Ethereum staking. Investors started to reallocate capital away from memecoins and troubled altcoins. As most of the altcoins have recorded a price drop, holders are now turning to ETH staking yield to mitigate risk. From June 1 till June 8, Eth holders staked an additional 1 million ETH. The order books of exchanges suggest that Ethereum market demand is starting to outpace supply.
Currently, there is a shortage of 68,310 ETH across exchanges suggesting that Ethereum price will most likely rise as buyers begin to compete.
Will ETH Price Rise to $2000 Level?
Ethereum price has crossed the 20 and 50-day EMAs negatively indicating selling pressure over the price. Chaikin money flow score is 0.07 suggesting bullish strength in the price. The relative strength index is 47.87 denoting that price is facing the same pressure from bulls and bears. Eth price reached the upper band of bollinger and started to decline.
Ethereum Price crossed the 20-day SMA of bollinger and is headed toward the lower band which resides near the $1790 level. The long/short ratio is 0.913 with 47.74% longs and 52.26% shorts indicating that sellers are trying to push price down toward the recent support. Bulls need to protect the support as breaking it would potentially push price to $1700 level.
Conclusion
The market structure and price action for Ethereum is indecisive as price is currently stuck in a consolidation zone. The technical parameters are providing mixed signals regarding the direction. Eth price needs to break out of the zone for traders to understand the direction. The lawsuit has increased the staking of Ethereum which provides a positive outlook for the price.
Technical levels
Major support: $1790 and $1700
Major resistance: $1910 and $2000
Disclaimer
The views and opinions stated by the author, or any people named in this article, 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.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/09/ethereum-price-prediction-eth-price-trades-below-2000-level/