Ethereum (ETH), Institutional Buying Demand 'Negative'...$2,000 Breakout Target at Risk of Fizzling Out

▲ Ethereum (ETH)/AI Generated Image

Ethereum (ETH) has moved further away from a return to $2,000 after being blocked by the $1,850 resistance. If the $1,650 support level also breaks, the possibility of retesting $1,500 opens up.

According to crypto media outlet Cryptopotato on July 8 (local time), Ethereum rebounded strongly from the key demand zone at $1,500. It then attempted to breach the $1,850 resistance level, but the upward momentum was again halted.

On the daily chart, it failed to break above the long-term downtrend line that has capped its rise since last year. The 100-day and 200-day moving averages also remain above the price. The 200-day moving average is formed around $2,200, indicating that the long-term trend maintains a bearish structure.

If the daily close is confirmed above $1,850, the path could open up to the $2,000-$2,200 supply zone. Conversely, if the $1,500 support level breaks, there is a possibility that the bearish trend could deepen further. On the 4-hour chart, the defense of the $1,650 buy order zone was identified as a short-term turning point.

The Relative Strength Index (RSI) has retreated from the overbought zone to near the midline. This is a sign that short-term upward momentum has weakened. If $1,650 is maintained, the recovery trend will continue after a correction, but if this level is given up, the possibility of retesting $1,500 increases.

The Coinbase Premium Index remained below the neutral line at approximately minus 0.07. This analysis suggests that institutional buying demand from US investors remains weak. A breakout above $1,850 and a positive shift in the premium index are needed to strengthen the signal that institutional demand is supporting the uptrend.

[Key Article Summary]

-Ethereum failed to break the $1,850 resistance, moving further away from a return to $2,000.

-The possibility of retesting $1,500 was suggested if the $1,650 support level breaks.

-The Coinbase Premium Index recorded minus 0.07, indicating that institutional buying demand from US investors remains weak.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*