Ethereum Tests Crucial Support But Won’t Drop Below $1,850: Here’s Why To Be Bullish On ETH Price

In recent hours, the market has experienced significant liquidations. Bitcoin’s price touched the $38K resistance mark only to trigger sellers to open short positions. Consequently, the price of Bitcoin nearly dropped by $1,000, while Ethereum’s price lost its momentum above $2,000, now hovering around a critical support level. Despite this, Ethereum is showing signs of a comeback. On-chain metrics indicate an increasing accumulation, which is acting as a buffer against any decline. 

ETHBTC Touches 1-Week Low

The latest data from Coinglass indicates significant market movements. In the past 24 hours, there was a liquidation event as Ethereum (ETH) struggled to maintain its value above $2,000. This downturn led to the liquidation of long positions worth approximately $37.5 million, strengthening the resistance level as the price did not meet buyers’ expectations.

Further insights from TradingView show that the ETH/BTC pair has reached its lowest point of the week, trading at 0.053. This trend points to an increase in selling activities in the market. Additionally, there appears to be a decreased interest from major investors, or “whales,” as Ethereum’s price could not surpass the $2,100 threshold. Data from IntoTheBlock reveals a decline in whale transactions, dropping from a high of $6.6 billion to around $4 billion. 

The potential for a decrease in Ethereum’s price may not be significant this time, as BlackRock’s initiative for a spot ETH ETF appears to have a positive impact, potentially maintaining the altcoin’s price in a favorable buying zone.

The NVT (Network Value to Transactions) ratio has been fairly steady around 48.3. This stability indicates that even though the network value has dropped due to a decrease in price, the volume of Ethereum transactions has remained high enough to keep the NVT ratio balanced. Therefore, it supports ETH’s price to hold above $1,850. 

What’s Next For ETH Price?

Ether’s value fluctuated notably, with the price attempting to decline below $1,900. However, bulls continue to put pressure, keeping the price above EMA200. As of writing, the ETH price trades at $1,936, declining over 4.55 from yesterday’s rate. 

However, the inability of the bulls to convert the $2,000 threshold into a stable support point is a concerning indicator. However, the positive move is that the buyers were able to maintain the price above the 20-day exponential moving average (EMA) on the daily chart. Should the buyers manage to sustain ETH’s value above $2,000, it could be a sign of strong purchasing activity at lower price points. In such a scenario, the price might aim to reach the higher zone, ranging from $2,140 to $2,200.

On the bearish side, if ETH’s price decreases and falls below the 200-day EMA on the 4-h chart, it would suggest a comeback of bearish momentum. Such a downturn could potentially lead to a further drop towards $1,750.