Ethereum [ETH] likely to face a wall of sellers at $1700 – Can the bulls prevail?

Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion

• Shopping for strain noticed ETH surge to the doorstep of a significant resistance but once more
• Patrons can await a breakout, whereas quick sellers might be swimming in opposition to the tide

The V-shaped reversal of Ethereum on the worth charts on Monday rewarded consumers handsomely, however it has not shaped any consolidation on the way in which up. This isn’t an issue in itself, however it appeared to current some uncertainty for consumers seeking to enter the market.

Learn Ethereum’s [ETH] Price Prediction 2023-24

The massive swathes of imbalances to the south would possibly get tagged earlier than one other leg upward. However, the worth may shoot previous $1700 this week. Which situation can a purchaser look to revenue from, and the way?

Violent reversal noticed ETH practically scrape the vary highs as soon as extra

Supply: ETH/USDT on TradingView

The sturdy shopping for strain meant that the autumn beneath the vary low at $1500 was invalidated throughout the house of three days. Typically, the sharp fall beneath the vary (yellow) and a subsequent retest of the lows can be a promoting alternative. Nevertheless, the OBV confirmed there was heavy shopping for quantity over the weekend and Monday.

This noticed Ethereum burst previous the $1500 and $1600-levels, pausing for just a few hours within the $1600 zone. This gave the impression to be the mid-range mark. To the north, the $1700-1750 zone will doubtless pose resistance to the costs.

Therefore, any ETH consumers can look to ebook income round this space and await a breakout and retest earlier than shopping for. Quick sellers can be promoting in opposition to the development and would possibly tackle further threat in the event that they’re not cautious with place dimension.

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The RSI and the OBV each confirmed sturdy bullishness. The RSI was effectively above impartial 50 and this might start an uptrend, offered $1700 is damaged. As soon as the $1750-area is flipped to help, the following larger timeframe resistance lay at $2000.

In case of a retracement, consumers may be looking out for a break in construction on decrease timeframes akin to H4 to exit their trades and restrict their losses.

MVRV ratio leaps larger however promoting strain may not have ended

Supply: Santiment

The 30-day MVRV ratio picked itself up from its 3-month lows and was again in optimistic territory as soon as extra, at press time. This recommended short-term holders had been in revenue. Nevertheless, the 180-day dormant circulation metric noticed a big spike on 12 March.

The imply coin age of Ethereum has additionally been in decline since mid-February. This was an indication of higher token motion between addresses. It additionally gave the impression to be an indication that the distribution section after the run upward in January continues to be not over.