- Ethereum price faces immense seller congestion around $2,000 according to the transaction history model.
- As fear grips the market due to the selloff perception toward Ethereum reduces.
Ethereum price recovery seems to be running out of gas following the vast declines earlier in the week. The largest smart contract platform hit another June low at $1,690, according to Tradingview price data in collaboration with Coinbase.
Following the dip, an immediate recovery took place, bolstering Ethereum to $2,000. However, no progress was made above this zone, paving the way for a brief correction. At the time of writing, Ethereum’s price is trading at $1,964 after holding higher support at $1,850.
Can Ethereum price break this new ranging action?
The 12-hour chart illustrates the possibility of Ethereum consolidating below $2,000. With support, $1,850, bearish advances could be kept at bay. It is worth noting that the Moving Average Convergence Divergence (MACD) indicator levelling action the zero line. This means that Ether is caught up in a tug of war where bulls and bears have equal strength.
ETH/USD 4-hour chart: major resistance at 2,818
At the same time, the Relative Strength Index (RSI) confirms the sideways price action as it moves horizontally at 36. Recovery from the oversold region lost momentum under 40, curtailing the bulls’ aggressive push for gains above $2,000. As long as the technical picture remains unchanged, Ether may assume a consolidation period.
Ethereum IOMAP flashing a red signal
The IOMAP model by IntoTheBlock (ITB) reveals an immense resistance between $1,978 and $2,035. Here, nearly 167,400 addresses previously bought around 6.8 million ETH. It will be challenging for the bulls to crack this hurdle, thus making recovery a challenging endeavor in the near term.
On the downside, support areas do not seem strong enough to completely barricade Ethereum’s price from revisiting lower levels toward $1,600. Nevertheless, the IOMAP model directs our attention to the region between $1,737 and $1,798. Here, roughly 775 addresses previously bought 1.9 million Ether. If this support area breaks, investors can expect another price drop.
Social sentiment towards Ethereum at lowest levels since 2018
According to Santiment, a leading behavioural analytics platform, perception toward the world’s leading smart contract platform has dwindled massively since June 2018. The drop could be connected to the fear that gripped the market as crypto assets plunged in May and June.
Note that Ethereum developers have announced the successful execution of the London hardfork. This will see the implementation of the controversial Ethereum Improvement Proposal 1559 to reduce the gas fee currently paid by network users.
While users have welcomed the upgrade, some Ethereum miners object to it as it reduces their revenue. It is worth keeping in mind that Ethereum price may benefit as users begin to enjoy lower gas fees on the platform.
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John Isige
