Ethereum in a Squeeze, ETH Bullish Above $1,800

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The Ethereum (ETH) prices remain in a tight range, tepid, and below the psychological resistance levels at $1,900 and $2,000, respectively. From the daily chart, the path of least resistance, at least in the short-term, is southwards.

Specifically, the anchor bar of July 6 defines the current price action. Since it is bearish, the odds of ETH crumbling in the days ahead remain elevated. Nonetheless, the confidence from bulls is due to the sharp expansion of prices from mid-June and the continued rejection of lower lows below the $1,800 and $1,820 support zone, evident in the daily chart.

Vitalik Buterin Moves Coins to OKX as Justin Sun Unstakes Millions

Despite the bearish preview and the failure of bulls to press higher, the uptrend remains at least from a top-down preview. Currently, Ethereum prices are within a bull flag, and a squeeze is forming in the daily chart as price action moves in a tight horizontal zone.

Amid this technical formation, news that an address associated with Vitalik Buterin, the co-founder of Ethereum, has moved over 2,000 ETH to OKX, a crypto exchange, is dampening sentiment. Typically, such transfers are associated with liquidations, which could heap more pressure on ETH.

The news is hot on the heels of Justin Sun, the co-founder of Tron, unstaking millions of ETH from Lido, a liquidity staking provider, on July 10.

In both instances, there were no explanations behind the move. However, ETH prices are largely unmoved, looking at the formation in the daily chart.

Ethereum (ETH) Price Analysis

Ethereum price on July 12 | Source: ETH/USDT on Binance, TradingView

Ethereum is up 15% from June 2023 lows and 35% from March 2023 lows.

ETH remains below the $2,000 and $2,100 psychological resistance levels. As visible in the daily chart, prices are inside a wedge, a bull flag. Therefore, while there could be entries for aggressive traders, conservative risk-on traders must wait for a conclusive close below $1,820 or above $1,970 or July 2023 highs before committing.

If buyers take control in continuation of the June bull run, ETH prices could spike to as high as $2,000 and $2,100, marking April 2023 highs. Traders may look to ride the emerging uptrend if the rally is with expanding volumes.

Conversely, any dump with high participation forcing prices below the immediate support zone could trigger a sell-off towards $1,640 or June 2023 lows.

Technical charts courtesy of Trading View.

Disclaimer: The opinions expressed do not constitute investment advice. If you wish to make a purchase or investment we recommend that you always conduct your research.

If you found this article interesting, here you can find more Ethereum news.


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