Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- A bounce in ETH prices searching for liquidity near $1850 was a possibility.
- The lack of volatility meant traders looking to enter the market can wait for more favorable conditions
Ethereum [ETH] was trading at $1832 at press time and has been in a lower timeframe downtrend since 17 July. The bulls were unable to defend the $1900 support zone and did not put up much of a fight in the weeks since then.
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The range formation appeared to have broken down, but ETH clung tenaciously onto the $1825 level. Will the bulls succumb soon, or was this price action signaling that a bullish reversal was building strength?
Despite the bearish structure, the sellers can’t make much headway
![Ethereum [ETH]](https://statics.ambcrypto.com/wp-content/uploads/2023/08/PP-2-ETH-price.png)
Source: ETH/USDT on TradingView
On 1 August, Ethereum prices charged higher on considerable volume on the lower timeframe charts but were unable to push beyond the lower high at $1877. It was followed by a reversal and these short-term gains were completely wiped out.
This highlighted a liquidity hunt on 1 August from just beneath the range lows.
In the week since, liquidity has likely built up just above the $1850 level, as it offered a clear lower timeframe invalidation for the bears. Therefore, an ETH move to the $1850-$1870 region in search of liquidity was possible. It would likely be followed by a swift bearish reversal.
The OBV showed that neither the buyers nor the sellers were dominant since 17 July, but the price action has been in a downtrend. The RSI also showed bearish momentum and had the upper hand in recent weeks.
Data from Monday revealed heavy selling pressure when ETH slid toward $1800
![Ethereum [ETH]](https://statics.ambcrypto.com/wp-content/uploads/2023/08/PP-2-ETH-coinalyze.png)
Source: Coinalyze
On Monday, 7 August, Ethereum fell from $1836 to $1808. In those few hours, the Open Interest saw a quick surge higher. This was indicative of short positions being opened en masse. When the price bounced back to the $1830 mark the OI began to climb lower.
How much are 1, 10, or 100 ETH worth today?
The spot CVD was flat in the past 12 hours but had trended downward in the past week. Together, the indicators showed strong short-term bearish sentiment. The rebound from $1802 does not show bullish strength but could have been fueled by short covering.
To the south, the $1750-$1770 demand zone could attract the price to it. Ethereum left behind a fair value gap on the H4 chart in that region. Moreover, it served as support in late March and throughout April.
