Ethereum is changing hands near $1,756 and has climbed around 12 percent over the past week. This digital asset is still 65 percent below its all-time high of $4,946 considering its steady weekly gain. The move was built on a rise from the monthly open close to $1,570. At the time of writing, the asset’s 24-hour volume stood at $12.73 billion, which is not euphoric and is in the healthy range.
This move looks clean on the surface level but the thing to note here is that internal factors are suggesting more information.
The level that was responsible for the formed structure
Considering the four-hour chart, the recovery now depends on one level: $1,736. This is the level that has capped this asset’s price through most of late June and has been rejecting every rebound. This was taking place when the market ground sideways in a range between $1,570 (monthly open) and $1,527 (the base that represents June lows). The important thing here is that the asset held that base without breaking it for around two weeks while being in the lower band.
The price of Ethereum has broken through $1,736 with ease, taken a shot towards $1,800, and is now pulling back to the weekly open. This is a classic support-resistance flip that is being tested at this exact moment.
Hold $1,736, and the structure can be confirmed, and the marker participants can experience how quickly the price retraced from that level, indicating no buyers were willing to take time out of their day to come protect it. Lose it and we may witness this from $1,570 as a failed breakout and bring June’s range back into the picture. In the other case, the other levels come into play with $1,779 and $1,800 as the next high hurdles, which are not yet reclaimed. Both need volume backing them to truly break instead of just a test-and-fade scenario.
Key fibonacci levels
The price of $1,756 is standing between the 23.6 percent retracement at $1,767 and the 38.2 percent retracement level at $1,717 for the move from $1,506 to $1,847. This shows a very minor pullback, which in turn is depicting a healthy trend. In essence, $1,717 is the important support level that can push the price upwards towards the $1,940 and $2,058 zone.
If the price doesn’t hold the momentum and this digital asset loses the $1,677 level, it changes everything. Since that level is lined up with both the 30-day SMA, which is at $1,674, and the 7-day SMA at $1,686. A breakdown at that point can negatively impact the price and open the way for $1,636 next.
Momentum is on the extreme side
The MACD histogram is up +31.6 and widening with the line now -21.3 turning on the signal of -52.9, both these lines usually converge before a bullish crossover occurs but remain beneath the zero level so this would appear to be a move out of an oversold condition, not a mature bullish move out of overbought conditions.
A look at the 7-day, 14-day, and 21-day RSI is offering a mixed reading, with the 7-day above 70 percent at 72.9 and depicting it is currently overbought. However, the longer-dated averages are just below 60 at 57.4 and 50.9. This is more of highlighting that this burst of momentum is forming at the low of a slow base and not at its peak, as well as this would likely be quickly resolved in the shallow Fib zone beneath current prices.
The bid was supported by a leading buyer
BitMine added ~$73 million ETH last week ($43 million prior) and the treasury now stands with a figure of 5,742,237 ETH (4.7 percent of supply). 4.88M staked (~$8.8 billion) at a 2.68 percent yield, projecting $235 million a year, up 7x since January (659K to 4.88 million).
In the same week, Strategy has made the sale of a decent portion of BTC for the purpose of dividends. One treasury is adding the supply, and the other is locking it away. Invalidation currently sits 2 percent below price, so the treasury is more of a steady buyer, which is a big reason why they keep buying dips.
