The bulls of the Ethereum price are doing everything in their power to mitigate the losses after the support at $1,900 caved in. The token that powers the largest smart contract token has in the last 24 hours, has been little changed, and trades at $1,870. Despite the narrow trading range, a trading volume of $6.5 billion was posted, with the market capitalization falling slightly to $224 billion.
Ethereum Price Charts Show 18% Bullish Move
The price of Ethereum has formed a reverse head and shoulders (H&S) on the daily chart, with the possibility of a rally of 18% to $2,372.
As a technical chart pattern, the H&S reversal presents a bullish signal to Ethereum traders. He was born for three troughs, with the middle deeper – the “head”, and the “shoulders” flanking less.
A bullish move would be confirmed when this ‘neckline’ breaks, investors often anticipate an upward price swing, equal to the height of the extrapolated model above the breakout point, $2,000 in the case of Ethereum.
The path with the least resistance is at the meeting for now with a greater risk lurking in the shadows if the bulls lose the support provided by the 50-day Exponential Moving Average (EMA) (in red).
While those declines may rebound on the 100-day EMA (in blue), the current technical picture suggests that upside pressure may increase in the coming days.
In particular, the Moving Average Convergence Divergence (MACD) adds credence to the bearish outlook after sending a sell signal. The fall of Ethereum below $1,900 could have accentuated the call to sell, which is manifested by the MACD line in blue crosses below the signal line in red.
The Relative Strength Index (RSI) reinforces the bearish outlook as it slides below the median line.
With this in mind, shorts traders would wait for lower profit targets, for example, the 200-day EMA (purple) and the primary support between $1,630 and $1,700.
Ethereum Staking Attractive Staking
In recent months, investors have wholeheartedly embraced Ethereum staking on both the primary blockchain and liquid staking platforms. According to information on the chain shared by Token Terminal Intern on Twitter, “total assets through liquid staking protocols are hitting ATH, despite Ethereum taking -61% from the top.”
Ethereum staking eventually began to gain traction after the initial withdrawals that followed the Shapella upgrade. Liquid staking platforms like Lido continue their dominance after the protocol update that allowed investors to withdraw their staked Ether for the first time since the transition to the PoS consensus algorithm.
The increase in staking implies that investors are optimistic about the future of Ethereum and are willing to HODL the token with the hope of a rally back to the ATH. Staking also contributes to reducing the supply of Ethereum on exchanges, which has been significantly reduced. If the demand for Ethereum increases, we will probably witness a discovery above $30,000.
The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication has no responsibility for your personal financial loss.