Ethereum price bulls are doing everything within their power to mitigate losses after support at $1,900 caved in. The token powering the largest smart contracts token has in the last 24 hours, remained barely unchanged, and trading at $1,870.
Despite the narrowing trading range, a $6.5 billion trading volume has been posted, with the market cap dropping slightly to $224 billion.
How Ethereum Price Could Confirm 18% Bullish Move
Ethereum price has formed an inverse head-and-shoulders (H&S) on the daily chart, with the possibility of an 18% breakout to $2,372.
As a technical chart pattern, the inverse H&S presents a bullish signal to Ethereum traders. It’s born via three troughs, with the middle one deepest – the ‘head’, and the ‘shoulders’ flanking shallower.
A bullish move would be confirmed when this ‘neckline’ breaks, investors often anticipate an upward price swing, equal to the height of the pattern extrapolated above the breakout point, $2,000 in Ethereum’s case.
The path with the least resistance is to the downside for now with greater risk lurking in the shadows if bulls lose the support provided by the 50-day Exponential Moving Average (EMA) (in red).
While those declines may bounce off the 100-day EMA (in blue), the current technical picture suggests that overhead pressure may soar in the coming days.
Notably, the Moving Average Convergence Divergence (MACD) adds credence to the bearish outlook after sending a sell signal. Ethereum’s drop below $1,900 might have accentuated the call to sell, which manifested with the MACD line in blue crossing below the signal line in red.
The Relative Strength Index (RSI) reinforces the bearish outlook as it slides below the midline.
With that in mind, shorts traders would be looking forward to lower profit targets, for instance, the 200-day EMA (purple) and the primary support between $1,630 and $1,700.
Ethereum Staking Stays Attractive
Investors have in recent months wholesomely embraced Ethereum staking both on the primary blockchain and liquid staking platforms. According to on-chain insights shared by Token Terminal Intern on Twitter, “total assets through liquid staking protocols are hitting ATH, despite Ethereum bringing -61% from the top.”
Ethereum staking eventually started to gain traction after the initial withdrawals which followed the Shapella Upgrade. Liquid staking platforms like Lido continue their dominance following the protocol upgrade that allowed investors to withdraw their staked Ether for the first time since the transition to the PoS consensus algorithm.
The increase in staking implies that investors are optimistic about the future of Ethereum and are willing to HODL the token with the hope of a rally back to the ATH. Staking also contributes to reducing Ethereum’s supply on exchanges, which has been shrinking significantly. If demand for Ethereum rises, we are likely to witness a breakout above $30,000.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
