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- ETH dipped by 6% over the past 48 hours with bears flipping the $1,619 level to resistance.
- Selling pressure could exist in the mid to long term due to spikes in exchange inflows.
Ethereum’s [ETH] attempt at a bullish uptick after the bearish break was swiftly curtailed at the $1,619 resistance level. Previously ETH had ranged between the $1,619 and $1,718 price levels over a month-long period.
Realistic or not, here’s ETH’s market cap in BTC terms
If Bitcoin [BTC] continues to move sideways between $25.7k and $28.4k, ETH could mirror the king coin’s price action with a range of its own between $1,550 and $1,619.
Bullish resolve at $1,619 succumbed to price volatility
Source: ETH/USDT on Trading View
The hack of Vitalik Buterin’s (co-founder of Ethereum) X account on 10 September ushered in a wave of panic selling of ETH. This gave sellers the necessary impulse to break the bullish defense of the $1,619 support level.
Despite the 6% drop, bulls quickly rallied at the $1,550 support level and touched the new resistance level of $1,619 within 24 hours. However, the price action on the 12-hour timeframe showed a bearish rejection at the level.
The Relative Strength Index (RSI) highlighted the bullish recovery with a sharp push out of the oversold zone, although the buying pressure waned close to the neutral 50 mark. The On Balance Volume on the other hand continued to dip lower to underline the overall bearish sentiment.
Notwithstanding the bullish bounce, a continuation of this price action could see ETH settle into another range between $1,550 and $1,619.
How much are 1,10,100 ETHs worth today?
On-chain metrics highlighted the possibility of sustained selling pressure
Source: Santiment
Data from Santiment showed a large drop in the 90d mean coin age. This suggested that a lot of ETH sells were triggered by long-term holders over the past days.
Similarly, the exchange inflow recorded significant spikes between 6 September to 12 September. This hinted at sustained selling pressure with ETH likely to continue experiencing volatile price movements.
