The Ethereum price rally has slowed in recent weeks. The price has yet to break above the $2,000 level, which is worrying many market participants.
Ethereum price technical analysis
By: Edris
The daily chart:
On the daily time frame, the price has been making higher highs and lower lows since it rebounded from the 200-day moving average in early June.
However, there is a clear lack of bullish momentum, as ETH price continues to pull back towards the 50-day moving average located around the $1,900 mark. In case it breaks down, there are two nearby support levels available: the static $1,800 level and the 200-day moving average near the same price mark.
Therefore, although the momentum is seemingly fading, there is still hope that a bounce from any of these levels will kick off the next bullish rally.
The 4 hour chart:
Recent PA developments become clearer on the 4-hour chart.
ETH price has broken above the $1930 resistance level a couple of times since the beginning of July, but has failed in both instances as it has quickly broken back below the level.
Currently, the price is apparently targeting the $1,850 near-term support level once again, with the $1,750 level available as the next target in line should the previous level fail to hold. The RSI indicator, while previously signaling the possible false breakout and fall, offers little information at this point as it hovers around the 50% value. This behavior confirms the indecision of market participants and the balance in momentum.
sentiment analysis
By: Edris
Ethereum Coinbase Premium Index
The Ethereum price has been relatively stagnant for the past few months, consolidating around the $2,000 level. However, some interesting activity has been going on in the background.
The chart shows the Ethereum Coinbase premium gap, which is calculated based on the gap between the ETH price on Coinbase and Binance, two of the largest exchanges in the world. This metric shows whether US investors buy or sell together compared to other investors. Positive values indicate buying pressure from the United States.
As the picture demonstrates, there has been a significant change in US market sentiment as the Premium Gap Index has been mostly positive. Considering that many US investors are wealthy individuals or institutions, this could be a positive sign for ETH as it could be in the accumulation phase at the start of a new bull market.
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