Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
-The higher timeframe remained bullish.
-The presence of an imbalance and a breaker could see a strong reaction from the buyers.
Ethereum [ETH] breezed past a critical region of resistance at the $2000 area. The Shapella upgrade was followed by millions of dollars’ worth of ETH withdrawn by stakers. There were concerns that the withdrawals from Lido [LDO], and especially Celsius [USDC], could negatively impact Ethereum prices in the coming weeks.
Read Ethereum’s [ETH] Price Prediction 2023-24
Analysis of the price charts showed that the price action was strongly bullish and a good buying opportunity could arise if Ethereum saw a small dip in prices. Here’s what buyers can watch out for.
The confluence of the breaker and imbalance meant buyers will be interested in a retest
Source: ETH/USDT on TradingView
Ethereum had a strongly bullish outlook on the longer-term price charts. The $2000 level had been a key resistance in the past, and ETH has traded beneath this region since June 2022. In August, the price tried to break $2000 but was forced to reverse, forming a bearish order block (highlighted in red).
In the past few days, the bulls could cruise past this bearish stronghold. Their strength was so much that a large fair value gap (white box) was left behind as well. There was confluence between the fair value gap and the bearish order block, now expected to serve as a bullish breaker.
It was highly likely that a retest of the $1950-$2020 region will see a strong bullish reaction from ETH on the charts. Monday’s high and low could help lower timeframe traders form their bias for the coming week. Longer-term investors will be looking at the $2400 level next.
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Social dominance on the rise but mean coin age took a hit
Source: Santiment
Ethereum’s 90-day MVRV ratio was close to the six-month highs from January. With the price above $2000 as well, there were fears that a wave of selling pressure could commence from profit taking activity. The dormant circulation metric did not notice large spikes in the past month. Traders can watch this metric for signs of huge selling activity.
The mean coin age declined over the past week. This indicated increased movement of ETH between addresses, which could also be a result of the Shanghai upgrade withdrawals. Social dominance was on the rise and hinted at bullish sentiment.