Ethereum Price Struggles Uphill

Ethereum price could be gearing up another sell-off to $2,000 and below considering the decline in derivatives volume and open interest

Ethereum price remained largely stable throughout Thursday’s sessions, as cryptocurrencies attempted to recover from the post-CPI release sell-off. Despite the bullish outlook, a host of other effectors, including a potential death cross, could derail the uptrend in Q3.

Ethereum Price Struggles Uphill

Fresh data from Coinglass showed that Ethereum price may be preparing for another sell-off to $2,000 and below considering the decline in derivatives volume and open interest. This can also be interpreted as a consolidation phase after a period of heightened volatility and a shift in investor sentiment following the crash to $2,111 on Monday last week.

A subsequent drop in options volume is particularly noteworthy for ETH price, as it suggests reduced speculative activity and possibly lower implied volatility. Hence, Ethereum may experience less pronounced price swings in the short term.

Ethereum sits sandwiched between two key levels, starting with support at $2,060, as highlighted by the 200-day Exponential Moving Average (EMA) and a confluence resistance at $2,817 established by the 50-day EMA and the 50% Fibonacci retracement ratio.

A break on either side on the above range will shape the trend based on ETH price prediction. Considering a death cross is in the cards, a bearish outcome can be anticipated toward $1,500.

A death cross occurs when a long-term moving average flips below a short-term moving average. The 20-day EMA in the weekly time frame is grinding down toward the 50-day EMA to confirm the pattern.

After Ethereum price validated the last death cross of this kind in May 2022, a staggering 68% decline followed from $2,885 to $887, underscoring the severity of this pattern.

The Relative Strength Index (RSI) downtrend and neutral position at 42 adds credibility to the bearish thesis. It implies that ETH price is not oversold yet and that sellers have more room to enter before the second largest cryptocurrency reverses the trend for a bigger leg up above $4,000.

The above is the detailed content of Ethereum Price Struggles Uphill. For more information, please follow other related articles on the PHP Chinese website!