Ethereum Firm–Is It A Bull Trap? ETH Reserves on Exchanges Rising
Ethereum is wavy at press time, per the formation in the daily chart. As long as the coin remains below $2,800, sellers have the upper hand. However, the encouraging bounce from around the $2,400 and $2,500 support is a net positive for buyers. In the days to come, how prices evolve from spot rates will shape the short-term trend. Technically, any uptick above the local liquidation zones at the back of rising trading volume could see ETH soar, confirming traders’ expectations.
At spot rates, Ethereum is consolidating– showing in its performances. ETH is stable in the past day but down 6% in the previous week. At the same time, though trading volume is down, it is firmer than it was over the weekend and currently stands at over $12 billion.
The following Ethereum news events could influence price action:
- The increased inflow of ETH to exchanges should be a concern for traders. As trackers show, coin holders are sending more coins to Binance, Coinbase, and other exchanges. Any exchange transfer from non-custodial wallets is considered bearish.
- Technical indicators also show that there is a death cross in the daily chart. As the trend shifts lower, prices might follow. Even so, this formation is formed by lagging indicators and may not be, after all, valid.
Ethereum Price Analysis
ETH/USD is in green at press time, stabilizing after the drop of September 1.
Overall, the recovery of September 2, reversing all losses of Sunday, is welcomed.
Even so, the trend favors sellers in the short term.
Aggressive traders can consider shorts on every attempt higher but below $2,800. Their target would be August low at $2,100.
This will only change when prices expand above $2,800, at the back of rising volume.
If this prints out, the first target would be $3,300 and $3,500, respectively.
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