Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The bearish near-term $1920 order block showed that sellers had the upper hand.
- Ethereum is expected to slide to a low of $1840 after a failed breakout last week.
Ethereum [ETH] prices hit the $2,000 mark again on July 14, but fell quickly as sellers took control. Although the network has the largest number of paying users, it lagged behind other networks in terms of daily active users.
Read Ethereum’s [ETH] Price Forecast 2023-24
A previous report highlighted why a drop below USD 1950 constituted a bearish case in the near term. The continued decline in ETH prices over the past 24 hours highlighted growing bearish sentiment – and provided traders with an opportunity to short the token.
An ETH retest of short-term support at $1920 could be of interest
Source: ETH/USDT on TradingView
Bitcoin [BTC] and Ethereum both made big gains on July 13, but failed to hold onto the gains. While BTC showed some hope for a bounce, ETH’s price action indicated further losses. The first indication was the immediate pullback to the one-month range (yellow).
To add to the idea of seller dominance, for the past three days Ethereum bulls failed to hold the $1920 mark. This was accompanied by a sliding OBV, which showed increased selling pressure.
The RSI on the 2-hour chart has remained below the neutral 50 line since July 15, indicating that bearish momentum has remained dominant over the past few days.
A retest of the H2 bearish order block at $1910 presents a selling opportunity. Short traders can target lows of $1845 to make profits. Invalidating this idea would be a step back above the $1940 level, just above the range highs.
Spot CVD agreed with the OBV’s bearish findings
Source: Coin analysis
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In the past 24 hours, Ethereum has slowly fallen from $1918 to $1894. At the time of writing, it saw a jump to $1904, but the presence of the H2 order block meant further losses could be expected. While prices fell, Open Interest increased from $5.09 billion to $5.19 billion.
This was a sign of strong bearish sentiment in the market as speculators actively shorted the asset. Spot CVD has also moved down to underline the lack of demand. All things considered, the price action and indicators showed that sellers were winning the battle.