- ETH might need to overcome the $1,870 psychological area to revisit the $2,100 region.
- The token’s volume has decreased, and the MFI closed in on the overbought point.
- ETH’s directional strength was weak, pushing the coin further into a consolidation period.
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, could set its sights on reclaiming the $2,100 level. On-chain analyst Ali Charts pointed this out after highlighting the support and resistance levels that could affect the move toward the price mentioned above.
According to Ali, ETH had found stable support between $1.800 and $1,870. The analyst added that the accumulation of 11.2 million ETH was responsible for the stability. However, he also mentioned the $2,040 to $2,100 range was significant if ETH’s price was to increase. ETH had failed to revisit the $2,100 region since April 19 due to the reduced accumulation.
Swamped by the Weakness
So, to overcome this key obstacle, Ali noted that accumulation may need to match the 27 million ETH purchased during the last push toward the $2,100 mark.
By looking at the technical analysis, the daily ETH/USD chart showed that the altcoin’s price increased significantly between June 15 and July 1. During this period, ETH moved from $1,647 to $1.848.
However, the price increase was accompanied by a decreasing volume. Oftentimes, when the price increases and volume wanes, it’s a sign of a weak uptrend. At press time, the low volume consolidation has not changed. This indicates indecisiveness among traders, and the lack of interest could stop ETH from reaching $2,100 in the short term.
Also, the Money Flow Index (MFI) increased after a sharp fall on July 7. At the time of writing, the MFI was 72.25. Typically, the increase implies that money was flowing into ETH contracts. But if the upswing jumps to 80, then ETH would be overbought. This could lead to a retracement, and the push above $2,000 could again, be difficult.
ETH’s Demands Buying Pressure
Besides the MFI and low volume, the Directional Movement Index (DMI) indicated that ETH might struggle for another upward trajectory. As of this writing, the +DMI (green) was 19.99, and the -DMI (red) was 17.60.
The slight difference in the indicators suggests that neither buyers nor sellers controlled the market. Furthermore, the Average Directional Index (ADX) was 15.20. Since the ADX (yellow) was not close to 25 or above it, it means that the directional strength was weak.
So, for ETH to elevate into the $2,000 region, buying pressure needs to increase. This will help invalidate the presence of bearish bias currently present in the market.
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