In recent weeks, Bitcoin has shown significant consolidation near the $29,500 range. However, it recently dipped below the $28,500 threshold. This movement has ignited a strong selling sentiment in the market, a trend that Ethereum has also reflected. Presently, Ethereum’s annual price chart indicates that it’s at a crucial point. There’s a potential for it to breach its monthly support line, which could trigger another round of selling.
Bulls Liquidated Nearly $37 Million Worth Of Positions
Recently, the price of ETH saw a sharp decline, approaching the $1,850 mark. This forced long position holders to quickly lock their profits. Data from Coinglass indicates a surge in long liquidations, exceeding $36.5 million in just the past three days. This trend has intensified selling momentum at higher levels, creating a robust resistance close to $1,850.
The 1-year price chart for ETH is showing signs of concern. Amidst months of consolidation, Ethereum’s movement within a particular bracket has market enthusiasts awaiting a clear trend, which might emerge by September.
Since FTX’s collapse last November, Ethereum’s price has followed a rising wedge pattern. While it has consistently met its support levels in the past, the pattern seems to be converging, hinting at a final move. A drop below the support line could accelerate the confidence of long-term put holders, with predictions pointing to a potential dip to the $1,400 mark.
However, such a decline might require significant bearish news in the market. On the brighter side, Ethereum has historically bounced back by 20-30% after successfully testing its support. If it manages to rally from the current support level of approximately $1,750, we could see a surge toward the $2,000-$2,100 range.
What’s Next For ETH Price?
Ether’s inability to hold momentum above $1,800 has led to increased selling, driving the price down to a crucial long-term support level of $1,850. However, bulls are defending a decline strongly as there’s buying pressure near the dip. As of writing, ETH price trades at $1,776, declining over 1.7% in the last 24 hours.
With the declining 20-day EMA and the RSI trading way below the selling zone at level 15, it indicates that the bears are currently dominating. If the price consistently falls and drops below $1,703, we might witness a sharper sell-off, potentially pushing the ETH price to $1,626.
However, to turn things around, bulls must rebound the price from $1,850 and push the price beyond the 20-day EMA at $1,818. Achieving this could pave the way for a rise to consolidation around $1,860.