- Ethereum price analysis highlights ETH price movement past the $2,500 resistance level.
- Although Ethereum has hit the $2,500 resistance level, it has failed to slice through.
- The failure to breach through the resistance level has led to the formation of a lower high, signaling further plunging.
- A surge from the 62 percent or the 70 percent Fibo retracement level would be an excellent place to kick-start a new upsurge.
Ethereum is exchanging hands below the $2,500 crucial resistance level at the time of writing despite its efforts to breach past it. If Ethereum closes the day above the June 9 swing high, the crypto asset will form a higher high that will trigger an upsurge. However, a decisive close below this critical region will lead to increased overhead and selling pressure, which will allow the bulls to recover and give the price rally another try.
Ethereum Price Analysis: General price overview
Since June 3, Ethereum’s price action has formed 3 lower lows and lower highs, signaling a down surge is in progress. Although Ethereum seemed to have hit bottom on June 12 and 13, the price surge that followed appears to have ended prematurely. Ethereum’s dismal performance can be attributed to the lack of buying pressure and rejection at the $2,552 resistance level.
While ETH bulls still have an opportunity to come together and push the pioneer crypto higher, a potential surge in selling pressure would invalidate the bullish narrative. In the event of a surge in selling pressure, Ethereum is likely to close the day below the $2,320 price region, an action that will invalidate all the coin’s bullish prospects. At present, the $2,320 price region coincides with the 50 percent Fibo retracement level.
Such adverse price action is likely to plunge the smart contract token towards the 62 percent and the 70 percent Fibo retracement level at around $2,177 and $2,077, respectively. If the bears get more assertive in their pursuits, Ethereum risks settling around the 79 Fibo retracement level at around $1,970. This will be a situation of a highly bearish case. Therefore, market participants need to look out for price swings below the resistance barriers mentioned above.
Ethereum price movement in the past 24 hours
According to the 24-hour chart, a surge from either of the mentioned critical support levels would be an ideal place for bulls to bid. Such developments are sure to lead to a build-up in buying pressure. Therefore, market participants can expect a new upsurge to spring from here. Additionally, the price rally that advances at either of these price levels would push the crypto asset towards the range high at around $2,910.
Ethereum 4-hour chart
As for the number of active addresses, Ethereum has witnessed a drastic decline from 764,000 to roughly 500,000 between May 12 to date. This 35 percent decline suggests that Ethereum traders are becoming less interested in the crypto at current price levels and are becoming few. Additionally, the past few days have seen a 3 percent plunge in the daily active addresses from approximately 520,000 to 500,000. This suggests ETH investors are either reallocating their holdings or booking for profits.
According to the 365-day Market Value to Realized Value (MVRV), Ethereum is in for further adverse price movements if it fails to settle above the aforementioned critical support line. At present, the 365-day MVRV indicator shows there is a 12 percent decline in investors who are in profit. However, Ethereum still has about 40 percent of investors in profit. This is scary news as these investors might decide to sell their assets to prevent losses, an action that is sure to add to Ethereum’s woes.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.