Ethereum's bearish U-turn? ETH Price Momentum Fades After $1.6K Rejection
Ether may fall further below $1,350 in August as ETH price rally falters.
Market analysis
Ethereum's native Ether (ETH) token fell on July 26, dampening hopes of a prolonged price recovery. ETH/USD fell around 5%, followed by a modest rebound to above $1,550.
Ethereum is rejected at $1,650These overnight moves liquidated over $80 million in Ether positions in the past 24 hours, CoinGlass data reveals.
ETH/USD hourly price chart. Source: TradingViewThe seesaw action also revealed an underlying bias conflict among traders who were caught between two starkly opposite market fundamentals.
The first is the euphoria surrounding Ethereum's potential transition to proof-of-stake in September, which has helped Ether's price recover 45% since the start of the month.
However, this bullish hype is at odds with macroeconomic headwinds, namely the hawkish stance of the Federal Reserve and the European Central Bank, which put pressure on risky assets and saw the price of Ether is down 68% to date from its all-time high of $4,950.
But the short term could offer some upside for the price of ETH. For example, analyst PostyXBT predicts that Ether will undergo an intermediate retracement to the upside based on the token's recent swings inside an ascending channel pattern, as shown below.
Ether may fall further below $1,350 in August as ETH price rally falters.
Market analysis
Ethereum's native Ether (ETH) token fell on July 26, dampening hopes of a prolonged price recovery. ETH/USD fell around 5%, followed by a modest rebound to above $1,550.
Ethereum is rejected at $1,650These overnight moves liquidated over $80 million in Ether positions in the past 24 hours, CoinGlass data reveals.
ETH/USD hourly price chart. Source: TradingViewThe seesaw action also revealed an underlying bias conflict among traders who were caught between two starkly opposite market fundamentals.
The first is the euphoria surrounding Ethereum's potential transition to proof-of-stake in September, which has helped Ether's price recover 45% since the start of the month.
However, this bullish hype is at odds with macroeconomic headwinds, namely the hawkish stance of the Federal Reserve and the European Central Bank, which put pressure on risky assets and saw the price of Ether is down 68% to date from its all-time high of $4,950.
But the short term could offer some upside for the price of ETH. For example, analyst PostyXBT predicts that Ether will undergo an intermediate retracement to the upside based on the token's recent swings inside an ascending channel pattern, as shown below.
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