Can the Ethereum bulls break out of the slump of the past two weeks?

Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.

• The price action on a lower time frame showed that the bears were heavily favored.
• Ethereum was trading in a higher time frame support zone where recovery could be initiated.

Ethereum [ETH] has been on a downtrend on the lower time frame price charts for the past two weeks. Recent attempts to regain the $1700 level ended in failure. The falling MVRV ratio suggested that the downtrend was likely to continue.

Read Ethereum’s [ETH] Price Forecast 2023-24

The price action showed that the structure was bearish across multiple time frames, from the daily to the 1-hour chart. ETH was within a higher time frame interest area that buyers would be interested in, but this has not yet been realized. Here’s what prices may do in the coming week.

There is a high probability that Ethereum could drop towards USD 1400 if it cannot bounce back soon

Source: ETH/USDT on TradingView

The price action over the past two weeks indicated robust bearish sentiment. The series of lower highs and lower lows has continued over the past four days, although momentum has waned. The 1-day chart showed that the $1625-$1680 was a demand zone, where the previous Ethereum rally to $2020 started.

Therefore, a bullish structure break on the H4 chart would be the first step towards a recovery. The RSI climbed towards neutral 50 to signal a shift in momentum. However, the OBV did not increase significantly. This revealed weak demand and a lack of volatility.

A move below $1620 and a retest of the $1620-$1650 region could provide an opportunity to short ETH. In the south, the $1520-$1550 region could serve as support. Another demand zone lower on the chart was between $1370 and $1440.

The futures market lacked conviction and bears have an advantage

Source: Coinalysis

Coinalyze’s 1-hour chart showed that the Open Interest did not fluctuate much over the past week. Ethereum experienced a jump from USD 1580 to USD 1680, but it sank again towards the USD 1640 level. The OI has been on a downward trend for the past three days, alongside the price drop, indicating bearish sentiment prevailed.

How much is 1, 10 or 100 ETH worth today?

The spot CVD was in a downtrend until Aug. 23, but has since flattened its path. This showed that neither buyers nor sellers had the upper hand. The funding rate was positive and suggested more traders were long than short. However, this in itself does not guarantee recovery.

Aggressive ETH bearers can wait for a move below $1620 or a move into the $1700-$1720 liquidity pocket and a rejection to take short positions.