The post Ethereum Poised to Hold $1800 – Will ETH Price Break Above the Resistance Line? appeared first on Coinpedia Fintech News
The crypto market has recently undergone a sharp collapse, causing panic selling among investors. The Securities and Exchange Commission (SEC) recently filed lawsuits against two major cryptocurrency exchanges, Binance and Coinbase, leading to a significant downturn in the market. This bearish momentum has created a bloodbath in the crypto arena, with Ethereum (ETH) gaining attention. However, despite the negative news, ETH price continues to show positive momentum, leaving investors on the brink of the next price level.
Ethereum’s on-chain data provides bullish confidence
Ethereum whales, or large non-exchange holders, have steadily acquired more of the cryptocurrency this year and now own an unprecedented 31.8 million ETH, worth more than $59.6 billion. This trend has been noticed by analysis agency Santiment 
sentiment
On a chain
takes place amid recent market instability due to US regulatory actions.
Ether quarterly futures are a favorite of large investors, known as whales, and arbitrage firms. These fixed-month contracts typically carry a small premium over the spot markets, indicating that sellers are charging a higher price for delaying settlement.
Consequently, in a robust market, ETH futures contracts should exhibit a 4 to 8% annualized premium. This condition, also called contango, is common and not exclusive to cryptocurrency markets.
Based on the futures premium, also called the basic indicator, it appears that professional traders have moved away from leveraged long positions or bullish bets. But even when the price reached the $1,780 mark again on June 6, it was not enough to shift the sentiment of these major investors and market makers towards a bearish expectation.
Also Read: Will Bitcoin and Ethereum Face a ‘Brutal Summer’? Here are important levels to keep an eye on
What can you expect from the ETH price next?
Over the past two days, the price of Ether (ETH) fell below the resistance line of the falling wedge pattern, but the bears failed to capitalize on this momentum, suggesting demand is at lower price points.
After the bearish breakout, bullish traders pushed the price back above the moving averages, but they faced significant selling pressure around the $1,895 level. Currently, sellers are trying to hold the ETH price below the resistance line, and if successful, it could lead to a further decline in the ETH price towards the pattern’s support line.
At the time of writing, ETH price is trading at $1,851, down more than 0.5% in the past 24 hours. Currently, the RSI level is hovering around the 50 level, creating a stable region for Ethereum. However, if ETH price fails to maintain its current trend, it could fall towards the immediate support level at USD 1,760, below which the next support will be USD 1,610.
Conversely, if the price breaks above the resistance line, it would imply that the bulls have converted this line into a support level. Ethereum price may then initiate upward momentum towards USD 2,000 and eventually hit the resistance at USD 2,115.