Ethereum is relatively higher but down four percent on the previous day in a relief rally at spot rates. A notable development in the past few days is that buyers have been firm and building on solid gains posted on June 19. The complete reversal of June 18 losses with decent trading volumes is a net positive for traders anticipating more gains in the short term.
With optimistic buyers reviving demand, traders may search for suitable entries in lower time frames with targets at previous support, turned resistance, level at $1.25k and later $1.7k in short to medium term.
Ethereum is Truly Decentralized
Traders are factoring in solid factors around Ethereum’s development roadmap. A big part of this is the migration to Ethereum 2.0. Although it could be weeks before the team activates this massive upgrade, the expected relief from ETH selling pressure and scarcity could buoy demand.
As a result, the drop in prices below 2017 highs may have offered traders an opportunity to scoop the recent dips. Besides the upgrade, Ethereum as a processing platform is a reliable base layer for executing smart contracts.
Unlike competing platforms like Solana, which, for a moment, validators voted to intervene to freeze a whale from liquidating assets, Ethereum is decentralized. There could be builder decentralization, but the network is wholly community-driven with autonomous dApps led only by code and not any other external law(s) that may influence its operations.
Ethereum Price Analysis
Ethereum is down four percent in the last 24 hours but prices are still bottoming up from recent lows. Even so, although prices are printing higher with favorable trading volumes, sellers are still in control. This overview is valid as long as prices trend below $1.25k, the immediate liquidation level.
Aggressive traders may bank on the double bar bullish formation of June 18 and 19 to load the dips, expecting more gains in the short term.
However, whether buyers would flow and take charge of price action is dependent on if bulls can double down, pumping prices to the first buy target at $1.25k. A close above this level could embolden buyers, pumping prices to $1.7k.
Conversely, if there is a sell-off from spot levels, forcing ETH below $1k, it will be highly likely that the coin may slide below last week’s lows at $890 in a bear trend continuation formation.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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