- ETH faced rejection at $1,898 as buying pressure failed to overthrow sellers’ presence.
- A sell signal could arise if the MFI continues its downtrend and ETH doesn’t hit a higher high.
- While slight bullish sentiment appeared, ETH might not eventually succumb to an uptrend.
Although traders have shifted attention from Ethereum (ETH) and Bitcoin (BTC) lately, ETH was on the verge of finally losing hold of any sign of a bullish pattern. Recently, the altcoin has been hovering sound $1,860— a similar range it was seven days ago.
ETH’s biggest concern might not be breaking above the $2,000 region, but its potential to lose hold on $1,800. However, if the crypto market cap recovers from its decline, then ETH could approach $2,000 and possibly move above it.
ETH Has Been Rejected
From the 4-hour chart, ETH’s attempt to cross into the $1,900 has been met with an overwhelming rejection at $1,898. The pause in the uptrend could be linked to traders’ inclination to sell the asset on July 22 and 24.
While the $1,800 has been closely watched, ETH faces a crucial resistance of around $1,890. Recent market movements indicate that the resistance is not losing momentum, pushing ETH below $1,870.
Previously, buyers had attempted to push up the price to $1,846. But this trial has not yielded a sustained uptick.
Furthermore, the Money Flow Index (MFI) sharply fell to 31.58. As a measure of market sentiment, the MFI measures the liquidity flow into an asset within a specific period. An MFI reading above 80 indicates overbought conditions.
Conversely, when the MFI is 20 or below, it indicates an oversold condition. So, the current condition implies that the market was playing host to a lot of sellers.
Also, ETH did not hit a higher high while the MFI fell below the previous low. If the trend continues, then it could trigger a sell signal.
Slight Bullish Sentiment May Not Help
But before confirming the bearish pattern, other indicators need to be consulted. According to data from Coinglass, ETH’s Open Interest had fallen to 205.25 million.
When the open interest decrease, it is a sign that the market is liquidating and traders could soon close in on a panic selling mode. However, the funding rate evaded dropping into the negative region.
The funding rate at 0.0045, suggests that there was a slight bullish sentiment considering the open contracts traders have. But unlike the funding rate, the Cumulative Volume Delta (CVD) nosedived into negative territory.
The CVD compares market buy and sell orders by looking at the volume. So, the CVD state means that the average market behavior is tilted toward aggressive selling.
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