Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The market structure and trend remained bearish.
- Ethereum could drop towards USD 1500 if the bulls fail to hold USD 1700 in the coming week.
Ethereum had a bearish market structure on the daily time frame. Investors took Bitcoin and Ethereum from centralized exchanges and put them in DEXs or self-custody and buying pressure was reduced even though the platform’s gaming sector saw a boost.
Read Ethereum’s [ETH] Price Forecast 2023-24
Therefore, ETH bulls can wait for an opportunity, while sellers can look for a strong bounce before shorting the asset. Traders are likely to find opportunities, but the daily time frame bias remained bearish according to the king of altcoins price chart.
Ethereum formed a bearish divergence on the chart as buyer conviction appeared weak
Source: ETH/USDT on TradingView
Ethereum continued to drop in the daily time frame. The recent lower high of this downtrend was $1778 with an aggressive reading of the market, or $1898 with a more conservative view. Therefore, these are the levels ETH bulls need to break through to show that bulls had some control in the market.
Such a scenario seemed unlikely at the time of writing. The OBV was just above the May lows, but has been on a downward trend for the past three weeks. The RSI was below the neutral 50 to show bearish momentum. The RSI could form a bearish divergence with the price, marked in cyan, if ETH fails to move past $1778 in the coming week.
The $1750-$1790 area served as support from early April, but flipped to resistance a few days ago. A retest of this region could see rejection, though short sellers should watch out for a liquidity grab in the $1800 zone.
In addition to the price, the average coin age has dropped, sentiment is also suffering
Source: Sanitation
The 90-day average coin age was on an upward trend from late April to early June. On June 4, it reached a 3-month high, but then began to decline. The past 10 days showed intense selling pressure across the market, but the metric increased over the past 12 hours.
How much is 1, 10 or 100 ETH worth today?
Meanwhile, the MVRV showed holders lost and weighted sentiment was firmly in negative territory. They reflected investor sentiment, and the argument that ETH is undervalued at the time of writing makes sense. Still, buyers should be cautious as the trend has been against them and may wait for more favorable winds.