Ethereum could rise towards USD 1900, but here’s why that might not be bullish

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

• Ethereum could accumulate liquidity below USD 1900 for a bearish reversal
• Traders can monitor the range extremes and only turn bullish when the high turns into a support zone

Ethereum [ETH] traded within a range in the past two weeks. The on-chain stats showed investors HODLing and staking ETH, which was a bullish sign for long-term buyers. And yet, in the short term, volatility and trading volume have taken a hit.

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This finding suggested that conditions were not ideal for traders, although they can still benefit from price movements. The short-term range could present a trading opportunity for both bulls and bears.

Recent $1870 rejection highlighted bearish intent

Source: ETH/USDT on TradingView

On August 8, ETH broke the previously bearish market structure but failed to climb past the $1870 resistance zone. The $1875 resistance level as of Aug. 1 was a local high, a level the bulls failed to beat during the recent rally.

This indicated that bears had strength. Still, it also showed that many short positions could have placed their stop-loss order in the $1880 region. More conservative orders can also be placed above the range highs of $1890.

Therefore, an ETH move to these areas in search of liquidity is very likely. Such a move would also convince people that the sentiment is solidly bullish, accumulating even more liquidity from buyers. A reversal afterwards could be sudden, and panicked sellers would accelerate the price drop.

This is a possible scenario. The OBV pointed to a lack of buying pressure over the past week. The RSI noted neutral momentum as the price hovered around the mid-range.

Spot CVD presented evidence of rising demand for Ethereum

Source: Coin analysis

Based on the price action over the past week, the market structure appeared bearish. Open Interest also highlighted bearish sentiment while bullish speculators remained over the fence. In contrast, the spot CVD bottomed out on August 11 and has climbed slightly higher since then.

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

Therefore, it is possible that a move higher is brewing. Whether it will hit the range highs and then fall lower remains to be seen. The lack of an uptrend on the OBV suggested that ETH has not been in a short-term accumulation phase recently.

Hence, a push above $1890 may not happen anytime soon.