Sellers have expanded their dominant position, and bulls are unable to rebound after a significant reversal from their psychological level of $2000.Due to the price still falling below the resistance level of $1924, sellers have expanded their bearish dominant positionMACD's bearish crossover highlights selling pressureThe market wealth of bulls continues to decrease, causing Ethereum [ETH] to fall below the support level of $1924
Sellers have expanded their dominant position, and bulls are unable to rebound after a significant reversal from their psychological level of $2000.
- Due to the price still falling below the resistance level of $1924, sellers have expanded their bearish dominant position
- MACD's bearish crossover highlights selling pressure
The market wealth of bulls continues to decrease, causing Ethereum [ETH] to fall below the support level of $1924. Previously, after ETH was rejected at the psychological level of $2000 on July 14th, this level served as short-term support.
The rejection of prices shifts the advantage to the seller, while the rapid decline in prices provides short sellers with opportunities to make short bets. As the overall market adjustment progresses, ETH bulls may need to remain cautious as all indications indicate greater downside potential.
Bulls experience a sharp bearish reversal
On July 13th, ETH surged to the $2000 mark, which is seen as a sign of significant development for the largest counterfeit currency. However, a price report highlights the dangers faced by bulls within the price range of $1900 to $1950.
The bulls failed to maintain prices at the above level, expanding their bearish dominant position, with ETH trading at $1889 as of the time of publication. On the contrary, sellers will seek to break through the higher and lower points of the previous bullish rebound. Breaking through this level may cause the counterfeit currency to drop to $1800.
Looking at the chart indicators on the 12 hour time frame, it suggests that prices will further decline. The Relative strength index (RSI) fell below the neutral 50, highlighting the weakening demand for ETH. The Moving Average Convergence Divergence (MACD) also recorded bearish crosses, with the red bar below zero. This highlights the increasing selling pressure.
Short positions can establish new positions when retesting the $1900-1920 price range. If the bulls recover from the $1924 level and the bullish candles close above the resistance level, the selling idea will be invalidated.
Comparison of the Fates of Short and Long Term Holders
The market value to realized value ratio of Santiment reveals the general sentiment of holders. The 30 day MVRV ratio is -0.42%, while the 90 day MVRV ratio is 2.08%.
This means that short-term Ethereum holders are still suffering losses, while long-term holders are gaining profits, although the profits are very small. If the bearish trend continues, long-term holders may seek to exit, leading to further declines in ETH.
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