- Ethereum targets potential recovery towards $2,100 mark, according to analyst.
- Strong support level at $1,800 to $1,870 attributed to ETH accumulation.
- Low trading volume and lack of enthusiasm may impede ETH’s price surge.
Ethereum (ETH), the cryptocurrency with the second-largest market capitalization, is targeting a potential recovery towards the $2,100 mark. This observation was made by on-chain analyst Ali Charts, who emphasized the significance of support and resistance levels that may influence Ethereum’s journey towards a price above level.
Ali, a prominent analyst in the crypto industry, has observed that Ethereum (ETH) has established a strong and consistent support level ranging from $1,800 to $1,870. This stability can be attributed to a substantial amount of 11.2 million ETH accumulation. However, Ali also emphasized the significance of the price range between $2,040 and $2,100 for ETH’s potential price surge. It is noteworthy that ETH has yet to revisit this region since April 19, primarily due to decreased accumulation activities.
Drowning in weakness
To surmount this significant hurdle, Ali highlighted the necessity for accumulation to align with the acquisition of 27 million ETH observed during the recent surge towards the $2,100 threshold.
Upon conducting a thorough technical analysis, it is evident that the daily ETH/USD chart exhibited a substantial surge in price from June 15 to July 1. Throughout this timeframe, the value of ETH experienced a notable rise, ascending from $1,647 to $1,848.
Nevertheless, the surge in price was accompanied by a decline in trading volume, which is often indicative of a feeble upward trend. Currently, the consolidation with low trading volume remains unchanged, suggesting a sense of uncertainty among traders. This lack of enthusiasm may impede Ethereum (ETH) from attaining the $2,100 mark shortly.
Furthermore, it is worth noting that the Money Flow Index (MFI) experienced a notable rebound after a significant decline on July 7. Currently, the MFI stands at 72.25, indicating a positive influx of funds into Ethereum contracts. However, it is crucial to monitor the MFI closely, as a surge beyond the 80 level would suggest an overbought condition for ETH. Such a scenario could trigger a retracement, making it challenging for Ethereum to surpass the $2,000 mark again.
Growing demand for ETH drives buying pressure
In addition to the MFI and low trading volume, the Directional Movement Index (DMI) suggests that ETH may encounter difficulties in its pursuit of further upward movement. Currently, the +DMI (green) stands at 19.99, while the -DMI (red) is recorded at 17.60.
The marginal disparity in the indicators indicates a lack of dominance from either buyers or sellers in the market. Additionally, the Average Directional Index (ADX) registered a value of 15.20. Given that the ADX (depicted in yellow) did not approach or exceed the threshold of 25, it signifies a feeble directional strength.
For Ethereum (ETH) to surpass the $2,000 mark, there must be a notable surge in buying pressure. This surge will effectively counteract the prevailing bearish sentiment that pervades the market, thereby paving the way for ETH’s ascent into the $2,000 region.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
