Disclaimer: The information presented does not constitute financial, investment, trading or other advice and represents the opinion of the author only.
- The market structure and trend remained bearish.
- Ethereum could drop towards $1,500 if the bulls fail to hold $1,700 next week.
Ethereum had a bearish market structure on the daily time frame. Investors were pulling Bitcoin and Ethereum from centralized exchanges and placing them in DEXs or self-custody and buying pressure was depressed, although the platform's gaming sector saw a boost.
Read Ethereum [ETH] Price Prediction 2023-24
Therefore, ETH bulls may wait for an opportunity, while sellers may look for a strong bounce before selling the asset short. Traders will likely find opportunities, but the daily bias remained bearish according to the price chart of the king of altcoins.
Ethereum was forming a bearish divergence on the chart as buyer conviction looked weak
Source: ETH/USDT on TradingView
Ethereum continued its downward trend on the daily time frame. The recent lower high of this downtrend was $1778 with an aggressive market reading, or $1898 with a more conservative view. Therefore, these are the levels that ETH bulls need to break through to show that the bulls had some control over the market.
Such a scenario seemed unlikely at the time of writing. The OBV was just above the May lows, but has been trending lower over the past three weeks. The RSI was below the neutral 50 to show bearish momentum. The RSI could form a bearish divergence with the price, highlighted in cyan, if ETH fails to rise above $1778 next week.
The $1750-$1790 area served as support from early April, but was flipped into resistance just a few days ago. A retest of this region could result in a rejection, although short sellers should be wary of taking liquidity in the $1800 area.
Average Coin Age Has Fallen Along With Price, Sentiment Suffers Too
Source: Santiment
The average coin age of 90 days was in an upward trend from late April to early June. On June 4, it reached a 3-month high but began to decline thereafter. The past ten days have shown intense selling pressure in the market, but the metric has picked up over the past 12 hours.
How much are 1, 10 or 100 ETH worth today?
Meanwhile, the MVRV showed that holders were at a loss and weighted sentiment was firmly in negative territory. They reflected investor sentiment and the argument that ETH is undervalued at press time holds water. Still, buyers should be cautious as the trend was against them and can wait for more favorable winds.