Ethereum (ETH) price has broken below the key trendline shown below, making new monthly lows. The L1 token is currently trading at $1785. The price continues to trade in a critical demand zone of $1778- $1840, which I mentioned in my last analysis.
The price action of Bitcoin usually dictates the altcoin prices. ETH to USD has slid 2.65% decline this week. A reason for this can be the decline in the price of equities, which triggered a sell-off in digital assets. The cryptocurrency opened the day at $28,593, 0.47% below its previous close.
Analysts have noticed some interesting trends in the price of the second-largest cryptocurrency. There has been a simultaneous increase in long liquidations and open interest. This means that new leveraged trades are still being opened despite liquidated long positions. This puts Ethereum price at risk of extreme volatility in the near future.
In other news, Valkyrie has also jumped on the bandwagon of Ethereum ETF. The asset manager has filed for permission to deal in Ethereum Futures from the SEC. If the application is approved, the institutional demand for Ethereum is expected to increase as they will have ta convenient option to gain exposure to the price of the L1 token.
The Ethereum price is currently retesting the bottom of the demand zone of $1778- $1840, which I’ve mentioned multiple times. If Bitcoin continues to show bearish sentiment, Ethereum might continue to slide further. In case of a breakdown below this demand zone, bears could drag the price down to the 0.618 fib level at $1481.
For Ethereum price prediction to flip bullish, it needs to break above the $2010-$2150 supply zone. Such a move seems quite unlikely, considering the current market conditions and the recent BTC price action.
In the meantime, I’ll keep sharing updated ETH to USD analysis and my personal trades on my Twitter, where you are welcome to follow me.
This post was last modified on Aug 17, 2023, 12:48 BST 12:48