Saturday, September 30, 2023
HomeEthereumWhy Ethereum bears need to be cautious about shorting ETH before $2,000

Why Ethereum bears need to be cautious about shorting ETH before $2,000

  • Ethereum price is holding firm near the $1,679 resistance level.
  • Short sellers could be trapped if ETH surges to the $2,013 hurdle.
  • Our bullish short-term outlook will be invalidated if the altcoin breaks below $1,512.

ethereum price is Linking After the January rally subsided after three weeks. This tightening continues after BTC rose 3% over the weekend. Therefore, buying pressure may spike in the short term. The move could see ETH tagging an imminent hurdle and liquidating early bears.

Ethereum Price Between Two Prospects

ethereum price is inflated After a 35% increase in the first three weeks of January, the momentum slowed and the next week was solid. With ETH breaking below his $1,679 hurdle, market participants should be wary of increased short-term buying pressure.

There are two reasons why this happens.

  1. Market makers or smart money could push the price of Ethereum higher, attracting liquidity above the equivalent high formed at $1,679.
  2. The second reason is that a retest of the $2,000 sentiment level will encourage many investors to post profits, further adding downside pressure.

Moreover, this Ethereum price surge will overextend, causing the Relative Strength Index (RSI) to dig deeper into the existing bearish divergence. This technical formation occurs when the market value of the underlying asset rises in the face of decreasing momentum. Such a development shows that the rally is building on shaky foundations and a trend reversal in favor of the bears could happen soon.

So early shorts are tricky sudden pump Ethereum price to tag $2,000 psychological level.

ETH/USDT 1-day chart

The outlook for Ethereum price is slightly bearish, but a minor rally may still be on the way. A premature collapse of the $1,512 support and a lower low as the daily candlesticks close below it. This break in the bullish structure invalidates the bullish spike theory and confirms an opportunity to short ETH. In such cases, the support levels of $1,429 and $1,331 are good take profit levels.

on the other hand, ethereum As the price turns $2,000 into a support floor, it confirms the bullish outlook and increases the likelihood of an extended run up to the next key hurdle of $2,730.


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