Ethereum [ETH] price prediction turns bearish in the short-term: Here’s why

Why Ethereum [ETH] Price Prediction is Turning Bearish in the Near Term

Previously, an analysis indicated that Ethereum [ETH] was encountering difficulties in surpassing the $2.8k resistance level. The recent selling pressure observed in spot ETFs was primarily attributed to profit-taking activities.

Moreover, the rise in the Korea Premium Index suggested an increase in demand from the East Asian cryptocurrency market.

Ethereum Price Analysis

Upon examining the 12-hour chart, it was evident that persistent selling pressure throughout the past month had driven the 12-hour On-Balance Volume (OBV) to its lowest point in several months.

While this observation may seem concerning, it is important to note that OBV trends can fluctuate across different timeframes. In this case, the 1-day and 3-day OBV levels have maintained a relatively stable trend since December, showing no significant downward movement.

Although the overall price action trend appeared bearish, the Relative Strength Index (RSI) hovered just below the neutral value of 50. Additionally, the $2.8k level represented a crucial horizontal resistance level on a higher timeframe. The bulls seemed incapable of overcoming this significant barrier.

Further analysis on the 4-hour chart corroborated the insights from the 12-hour chart. Recent weeks saw minimal buying pressure, and despite a brief RSI surge above 50, the bearish pattern persisted.

There was a slight positive note in the formation of higher lows by ETH over the previous week. However, for any substantial impact, breaching the recent lower high at $2,880 would be essential.

The lack of significant buying activity and momentum, coupled with slow upward progress, indicated a potential scenario for a liquidity search.

Examining the Ethereum liquidation heatmap from the past month revealed that $2.9k and $2.5k were prominent zones of attraction. Notably, the $2.9k level, situated close to the current price, was likely to exert a pull on prices in the near term.

This aligns with the resistance zone at $2,800-$2,850 on a higher timeframe and the $2,880 barrier on a lower timeframe. It is anticipated that there might be a move towards $2.9k followed by a pullback to $2.5k or $2.6k within the upcoming days.

Disclaimer: The views expressed in this article do not constitute financial, investment, trading, or any other form of advice and represent solely the opinions of the author.