ETHUSD Hits Major Demand Zone as Price Retraces Upward

ETHUSD hits the major demand zone as the price retraces upward. Following the rapid expansion of ETHUSD in fractals to the upside in June and July 2023, the market’s environment changed to a bearish one. The price hit the $2030.00 resistance as it marked a new major high in the premium zone.

As signaled by the MA Cross, the market flipped bearish after the successful breakout at the $1876.00 price level to the downside. Further invasion of the bears led to a drastic fall in ETHUSD. The previous low of $1620.00 was invalidated as the bearish trend continued. The bears are finding it difficult to breach the $1531.00 support.

Following the formation of the three relatively equal lows at the $1531.00 support, ETHUSD experienced an upsurge. The upsurge led prices into the premium zone until a bearish order block was met. Owing to the selling pressure at the bearish order block, ETHUSD is likely to resume its downtrend.

ETH Key Levels

Demand Levels: $1531.00, $1370.00, $1310.00
Supply Levels: $1755.00, $1876.00, $2030.00

What are the Indicators Saying?

Since the sell signal of the MA Cross due to the failure of the $1876.00 previous support, the overall trend of the market has been bearish. The downtrend led prices into the discount zone as the RSI (Relative Strength Index) showed that Ethereum was oversold. ETHUSD expanded to the upside, following the bearish divergence between the price and the RSI indicator. As of now, ETHUSD is overbought, and the market’s bearish trend is therefore likely to resume.

 

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