Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Market structure and dynamics were bearish.
- A re-visit to $1560 was possible, but the bears could get the upper hand afterwards.
Bitcoin [BTC] The bulls managed to prevent BTC from falling below the $21.6k mark. Any slide towards $21.4k was quickly snapped up. Buyers can be cautiously optimistic as the price is in a good risk-to-reward range for the offer.
Read Ethereum [ETH] Price Forecast 2023-24
Likewise, Ethereum [ETH] it also had some reasons to be bullish. However, the price drifted dangerously close to the last line of defense before a dive to $1350. Lower timeframe momentum strongly favored sellers – but could a reversal occur?
The market structure has been consistently bearish, but the bulls have some hope
It was not a pretty sight for the ETH bulls on the price charts. The $1565 support from late January 2023 was clearly broken a few days ago, reversing the bearish structure. Alongside the price, OBV and RSI also started a downtrend. This underscored the bearish momentum and hard selling pressure that Ethereum saw last week.
During Ethereum’s rally above $1300 in mid-January, the price left a gap of reasonable value on the 12-hour chart. This range extended from $1464 to $1508. On February 13th, ETH had fallen to $1462 before bouncing higher. Therefore, this imbalance has been addressed. Will prices recover and rise?
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It must be remembered that the break of the market structure on the 12-hour and daily time frame at $1565 was strong. Therefore, while ETH could bounce back to this area, another move is likely to start from there. Therefore, rather than trading the potential bounce, traders can look for entries in a short position around the $1550-$1580 range.
Reasons to be bullish on ETH is the combination of FVG filling up and BTC at $21.6k. While both assets do not always move together, recent selling pressure has pushed the market for further losses. Therefore, an upward move will likely catch the majority off guard.
Open interest falls alongside prices to underline the bearish sentiment
Both OI and Ethereum spot CVD on the hourly chart have been in freefall for the past few days until the time was issued. The drop in OI and prices indicated the exhausted bulls and showed that the sentiment was bearish. Liquidated longs last week also showed bulls getting slaughtered.
With a bearish structure, momentum and increasing selling pressure, short sellers can have a good opportunity soon. A BTC break below $21.2k would likely see ETH move towards the $1300 mark as well.