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- Sellers extended their bearish dominance as prices held below the $1,924 resistance level
- Selling pressure highlighted by bearish crossover on MACD
Dwindling bull market fortunes saw Ethereum [ETH] sinking below the $1,924 support level. The level had previously served as short-term support after ETH was rejected at the $2,000 psychological level on July 14.
Read Ethereum’s [ETH] Price Forecast 2023-24
The price rejection tipped the upside in favor of sellers, with the rapid drop providing opportunities for bears to short. With a general market correction underway, ETH bulls may need to exercise caution as all signs point to more downside.
Bulls caught by sharp bearish reversal
Source: ETH/USDT in trade view
The significant July 13 gains that pushed ETH to the $2,000 mark were taken as a sign that big things were expected from the largest altcoin. However, a price report pointed to bull danger around the $1,900-$1,950 price range.
Bulls’ inability to keep the price at the aforementioned levels extended bearish dominance, with ETH trading at $1,889 as of writing. Conversely, sellers would try to break the high low of the last bullish rally. A break from this level could send the altcoin as low as $1,800.
Looking at the on-chart indicators on the 12-hour time frame, it indicated further price declines. The Relative Strength Index (RSI) moved below the neutral-50 to highlight declining demand for ETH. The Moving Average Convergence Divergence (MACD) also registered a bearish crossover with red bars below the zero level. This emphasized the increasing sales pressure.
Shorts may enter new positions on a retest of the $1,900 – 1,920 price zone. This sell idea will be voided if bulls recover the $1,924 level with a bullish candle just above resistance.
Opposite fortunes for short and long term holders
Source: Sentiment
A look at the market value to realized value ratio Sanitation revealed the prevailing sentiment among holders. The 30d MVRV ratio was -0.42%, while the 90d MVRV ratio was 2.08%.
How much is 1, 10 or 100 ETH worth today?
This implied that short-term Ethereum holders are still holding losses, while long-term holders are making profits, albeit marginally. If bearish momentum continues, long-term holders may be looking to exit, which could lead to more downward movement for ETH.