Ethereum’s struggle to surpass the $1,900 mark is mirrored by Bitcoin, which remains unable to break past the significant $29.5K threshold. Sellers have built up a strong resistance, causing the previously promising rally to lose momentum. Despite numerous attempts, Ethereum failed to surge above $1.9K due to the intense selling pressure. As a result, the price has entered a phase of consolidation, fluctuating around a crucial price level.
Bulls Continue To Book Profit Near Higher Levels
As Ethereum struggles with the $1,900 resistance level, a noticeable trend has emerged. Bulls continue to book profits near these higher levels. This trend is a clear indication of the current market sentiment – investors are taking advantage of the price spikes to secure their gains.
Coinglass data reveals that as Ethereum’s price approaches the $1.9K threshold, investors are quickly closing their positions. The chart indicates that when Ethereum’s price reached $1,875 on July 30th, the combined liquidation of both long and short positions surpassed $7 million. Notably, bullish investors were the primary contributors to this liquidation, closing positions worth over $5.6 million.
This profit-booking activity near the $1,900 mark is contributing to the selling pressure that’s preventing Ethereum from breaking through this critical resistance level. Each time the price nears this level, a wave of sell orders comes in, causing the price to retreat.
While this may be frustrating for those hoping for a sustained rally, it’s a common occurrence in volatile markets. Investors, particularly those who may have bought in at lower levels, are often keen to lock in profits when prices reach certain targets. In Ethereum’s case, the $1,900 level appears to be one such target.
If the ETH price gains enough buying pressure to overcome the sell orders at $1,900, it could potentially trigger a new wave of buying activity.
What’s Next For ETH Price?
Ether has been trading in a range-bound zone between the moving averages in recent days, indicating that while bulls are capitalizing on dips to the 50-day EMA, they are struggling to send the price beyond the 20-day EMA. As of writing, ETH price trades at $1,862, declining over 0.98% in the last 24 hours.
This tight trading range is likely to result in a solid breakout, either in a downward or upward direction. If the bulls manage to push the price above the 20-day EMA at $1,878, the ETH price could potentially break above $1,900 and test its resistance near $1,960. A successful surge from this level will send the price toward $2K.
On the flip side, if the price reverses and dips below the 100-day EMA, it would signal that the bears are gaining control. In this scenario, the price might continue to fluctuate within the broader range of $1,624 to $1,800 for an extended period.