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The overall cryptocurrency markets tend to consolidate towards the end of each month, only to climb again at the start of the next. However, after a five-day rally that saw Ethereum reach $2,288 in the middle of the week, the second cryptocurrency began to lose some of its shine. The ETH/USD pair has stumbled in its attempt to break over the $2,300 barrier. ETH has been on the back foot for much of the day, retreating to the $2,017 handle and trimming its weekly gains versus the dollar from 15% to about 12%. After falling lower, traders expect a near-term relief rally beyond $2k as shorts cover positions to buyback. At the time of this post, the Ethereum spot price is down 1.14% on the day while trading at $2,095. According to Santiment, the number of Ethereum holders continued to create history in early July, as the percent of $ETH held on exchanges hit the lowest since Nov 2018. The likelihood of a future significant selloff is reduced after falling below 18 percent for the first time in 31 months.
Key Levels
Resistance Levels: $2,800, $2,500, $2,300
Support Levels: $2,000, $1,700, $1,500
ETH/USD Daily Charts: Ranging
ETH/USD Daily Chart
As seen on the daily charts, volatility has risen in recent days, suggesting the conclusion of a multi-week consolidation period. As the market makes a final choice on which way to go, the moving average (MA 200) at $1,955 holds beneath as a key support zone. The moving average (MA 50) has been confirmed as resistance by the market on June 3.
While sellers continue to foster the bearish trend, the ETH/USD pair is strengthening above the $2,000 level. Moreover, the MA 200 slope has gone horizontal, indicating that buyers are battling back. Early upside limitations could emerge from the MA 50 around $2,500, restricting the upside advance if buying interest increases.
ETH/USD 4-Hour Chart: Ranging
ETH/USD 4-Hour Chart
Ethereum traders are pushing for a sustained rebound from the short-term moving average (MA 50) as the second cryptocurrency continues to face technical difficulties in the short term. The 4 hour time frame reveals that the ETH/USD pair is constrained between MA 50 and MA 200. While a breakout higher is still possible, with the $2,000 support level holding firm.
Overall, the level of selling on the spot market is lower than the volume of buying, which is a positive sign. Only when the ETH/USD pair is trading over $2,000 is it positive; major resistance is identified between $2,200 and $2,300. Sellers may test the $1,900 and $1,800 levels if the ETH/USD pair goes below $2,000.
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