Ethereum price at catch-22, pressed between this bullish outlook and a waning of momentum


  • Amid increasing volatility, Ethereum price has filled up the pennant making a breakout imminent.
  • While the outlook is bullish, less-than-sufficient buying momentum may delay the $2,000 dream for ETH bulls.
  • Large transaction volume has dropped 25% between June 1-3.
  • Buyers must increase participation to confirm the breakout above $1,949.

Ethereum (ETH) price is trading with a bullish bias, following Bitcoin's (BTC) heels. The Proof-of-Stake (PoS) token is up a staggering 60% in 2023, which is no mean feat considering the gloomy outlook in the market, characterized by the extended bear market, concerning macroeconomics and regulatory pressure. To put this into context, after the US Securities and Exchange Commission's (SEC) settlement with the Wahi brothers, the place of Ether in the eyes of the federal regulator has come into question. All these culminate into a FUD-infused market.

Also Read: Ethereum vs. SEC: Implications of Wahis' insider trading settlement on ETH

Ethereum price needs bulls to stop playing it safe

Ethereum (ETH) price has recorded a huge run since the year's onset, recording higher highs for the first four months of 2023. After breaking above the $2,000 level, profit-taking fueled a correction as investors hedged their holdings after breaking even from the May 2022 losses.

Accordingly, the resistance at $1,949 has come into play for the umpteenth time, preventing Ethereum price from recording further gains. This comes as investors' sell-stop orders lock in profits around that price. In layman's language, a sell-stop order is a stop order to sell at a market price after a stop price parameter has been reached.

The fortitude of the $1,949 hurdle comes amid waning buying momentum among bulls, which could see ETH retrace lower. This is likely, considering the Relative Strength Index (RSI) was pointing south, indicating a slump in buying pressure. Similarly, the Awesome Oscillators (AO) edged toward the bears, as indicated by the quick switch from green to red. Soon, this indicator could draw toward the midline and into the negative zone unless bulls recover.

The move could see Ethereum price lose the support confluence between the lower boundary of the pennant and the 50-day Exponential Moving Average (EMA) at $1,848. In the dire case, ETH could retest the 100- and 200-day EMA at $1,791 and $1,719, respectively.

ETH/USDT

On-chain metric: Large transaction volume

On-chain metric from IntoTheBlock shows a fall in investor momentum. Specifically, the volume of large transactions has fallen by 25% in the month, moving from 2.55 million to 1.95 million as of June 3.   

Conversely, if sidelined or late investors buy ETH at the current market value, the ensuing demand pressure could see Ethereum price break above the upper boundary of the pennant to confront the $1,949 hurdle. A decisive flip of this barricade into support would solidify the uptrend, but a tag of the psychological $2,200 would be the best-case scenario for ETH holders.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

US presidential election outcome could shape the future of crypto

US presidential election outcome could shape the future of crypto

US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).

More Cryptocurrencies News
Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.

More Bitcoin News
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.

More Ripple News
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.

More Ethereum News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP