Highlights of the storyEthereum prices face a new rejection from the previous day's high of $1928, as bears firmly grasp $1933.Despite bearish pressure, it is believed that ETH prices will trigger a significant rebound and resume a strong rise in the short term
Highlights of the story
- Ethereum prices face a new rejection from the previous day's high of $1928, as bears firmly grasp $1933.
- Despite bearish pressure, it is believed that ETH prices will trigger a significant rebound and resume a strong rise in the short term.
Ethereum prices began to rise significantly above $1800 and further broke through the key resistance level of $1880. As the price broke through the $1920 mark, bears were activated and quickly brought the price back below $1900. Although it faces a downward correction to $1885, the ETH price is still likely to rebound above $2000 in the coming days.
Ethereum Exchange reserves depleted
The balance of the exchange is one of the important factors pointing out the market sentiment. The increase and decrease in the balance reserve level indicate whether traders are willing to accumulate or liquidate high positions, which further affects the value of tokens. In the recent update, the ETH reserve balance of the exchange has dropped to its lowest point in five years.
A top analyst, LarkDavis, recently shared a chart that mentioned the reserve balance of the exchange. According to him, there are only 17.8 million ETHs left on the exchange. Whenever a trader wishes to sell his/her shareholding, he/she often switches it back to the exchange, which is when the balance on the exchange skyrockets.
However, in the current situation, the balance has significantly decreased, indicating that traders are willing to hold the token for long-term returns. In addition, there is also a bullish trend line being formed, with short-term support level around $1880. As ETH prices continue to trade above the main support levels of $1880 and 100-DSMA, the likelihood of a rebound and hitting the direct resistance level of $1920 is quite high.
Therefore, once these levels are stabilized, the next stop may be above $2000, as the main resistance level is around $2040, which may push prices up to nearly $2120. Otherwise, if there is a bearish pullback, the price may test the key support level of $1885. If it fails to hold, it may test several lower targets of $1870 and later $1815. In addition, if this position is not held, it may also fall below $1800.
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