Ethereum price slammed on the brakes stopping the uptrend that spilled into July at $1,950. Initially, the rejection was gradual, with ETH pivoting at $1,920.
However, waves of bearish forces sweeping across the market on Thursday sent Ethereum tumbling below $1,900 only to hang onto support at $1,825.
As reported in the Bitcoin price prediction, several economic indicators released this week did not sit well with investors, who worry that the Federal Reserve’s hawkish stance on inflation could send the US into severe inflation.
Ethereum price has recovered to trade at $1,856 at the time of writing on Friday, as bulls struggle to recoup about 3.5% of losses incurred in 24 hours.
Is Ethereum Price Poised For A Rebound?
Sentiment across the crypto market is still bullish, mainly due to interest from institutional investors, who reassure retail investors of a possible breakout to $2,000 and $2,200.
Similarly, the robust buyer congestion zone above $1,820 implies that further losses would be constrained. Therefore, this dip to $1,825 could offer investors a chance to buy ETH at a relatively lower price compared to July’s high of around $1,950.
Traders looking out for opportunities to gain exposure to ETH longs may want to ascertain that certain conditions are met. For instance, the Moving Average Convergence Divergence (MACD) indicator must confirm a buy signal.
With the momentum indicator below the mean line (0.00), traders would watch out for the MACD line in blue to cross above the signal line in red. Such a signal may compel more traders to bet on a rebound, especially in the wake of the drop to $1,825.
The Relative Strength Index (RSI) can also be used to further bulletproof the bullish narrative as the indicator bounces back from the slump to the oversold region, slightly below 30.
Meanwhile, a break and hold above the immediate hurdle posed by the 200-day Exponential Moving Average (EMA) would be required to validate the breakout. This move should be accompanied by a surge in the trading volume as traders trigger their buy orders.
Some traders may prefer to book conservative profits at $1,890, but those stubbornly bullish could wait until ETH retests the $1,900 resistance and attempts another breakout to $2,000. Other key levels to watch out for on the upside include the 100-day EMA (in blue) at $1,883 and the 50-day EMA (in red) at $1,904.
Ethereum Fundamentals Healthy and Growing
The Ethereum network growth has seen an interesting shift this week, with “new addresses being created at an increased pace,” Santiment reports. This development has sent the network growth metric upwards of 550k of newly created addresses.
📈 #Ethereum‘s network growth has somewhat quietly been on the rise. New addresses are being created at an increased pace, which is a signal for eventual market cap growth. We’ll monitor this #bullish divergence as $ETH ranges just below $1,900. https://t.co/TpiOUGgYGl pic.twitter.com/B0SrlrsrmB
— Santiment (@santimentfeed) July 6, 2023
According to Santiment, the uptick in the number of newly created addresses “is a signal for eventual market cap growth.” In other words, it signifies an expected increase in the demand for ETH as investors double down their bullish efforts.
That said, buying the dip could offer a profitable entry point as Ethereum starts another rebound eyeing $2,000 and $2,200 price points.
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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.
