Ethereum bulls unable to drive prices past $1930 as…

On Jun 28, 2023

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

The H4 market structure and momentum of Ethereum were bearish.
The move above $1930 collected liquidity before rejection, showing seller dominance.

As the largest altcoin in the market, Ethereum [ETH] is an asset that can sometimes shed light on what the rest of the altcoin market is poised for. Hence altcoin traders can find interesting information from the ETH price chart.

Over the past few days, Ethereum has flipped its short-term bias to bearish after the failure to breach a local resistance near $1930. This development suggested that ETH prices could be set for further near-term losses.

The failure to push past local highs showed Ethereum buyer weakness

Source: ETH/USDT on TradingView

The H4 price chart showed a strongly bullish market structure after the strong move above $1770 on 20 June. Ethereum bulls were able to follow this breakout by posting gains of close to 9% within the 36 hours that followed.

However, the strength of these bulls faced its match at the $1927 mark. This level represented a key lower high on the daily and 4-hour timeframes. A breakout past this level would have indicated that bullish sentiment was prevalent in the 1-day timeframe as well.

Yet, this did not happen. Instead, ETH faced rejection at the resistance. Moreover, its H4 structure was flipped bearish once more when it sank below the $1861 level on 26 June. The RSI slipped below neutral 50 on that day, showing momentum had begun to shift bearish.

The CMF was at -0.07 at the time of writing, showing significant capital flow out of the market in recent hours. To the south, the former resistance in the $1750-$1780 region can act as support. A large imbalance (white) could also attract Ethereum prices toward it.

The spot CVD showed unenthusiastic demand

Ethereum fails to hold on to the bullish structure, here's why losses are likely

Source: Coinalyze

The 1-hour chart of the Open Interest and spot CVD from Coinalyze showed that the sentiment leaned in favor of the sellers over the past week. The Open Interest remained flat for the most part, although it did see strong gains on 25 June. The OI moving upward followed ETH’s rally from $1870 to $1920.

How much are 1, 10, or 100 ETH worth today?

At that time, it showed strong bullish sentiment, but the buyers have not been able to sustain that momentum. Instead, the OI began to descend.

The spot CVD was also in a strong downtrend in recent days, highlighting selling pressure.

This article originally appeared here.

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