Ethereum’s struggle to cross the $1,900 mark is mirrored by Bitcoin, which is still unable to cross the significant $29.5K threshold. Sellers have mounted strong resistance, weakening the previously promising rally. Despite numerous attempts, Ethereum failed to rise above $1.9K due to intense selling pressure. As a result, the price has entered a consolidation phase, which fluctuates around a crucial price level.
Bulls continue to make gains near higher levels
As Ethereum struggles with the $1,900 resistance level, a noticeable trend has emerged. Bulls continue to post gains near these higher levels. This trend is a clear indication of the current market sentiment – investors are taking advantage of the price spikes to secure their profits.
Coinglass data shows that as the price of Ethereum approaches the $1.9K threshold, investors are quickly closing their positions. The chart indicates that when Ethereum’s price hit $1,875 on July 30, the combined liquidation of both long and short positions exceeded $7 million. In particular, bullish investors were the main contributors to this liquidation, closing positions worth more than $5.6 million.
This profit-booking activity near the $1,900 mark adds to the selling pressure that keeps Ethereum from breaking this critical resistance level. Every time the price approaches this level, a wave of sell orders comes in, causing the price to pull back.
While this can be frustrating for those hoping for a sustained rally, it is common in volatile markets. Investors, especially those who may have bought in at lower levels, often want to lock in profits when prices reach certain targets. In the case of Ethereum, the $1,900 level seems to be one such target.
If ETH price gets enough buying pressure to overcome the $1,900 sell orders, it could potentially trigger another wave of buying activity.
What’s next for the ETH price?
Ether has been trading in a range-bound zone between the moving averages for the past few days, indicating that while bulls are benefiting from dips to the 50-day EMA, they are struggling to drive the price past the 20-day EMA. At the time of writing, ETH price is trading at $1,862, down more than 0.98% in the past 24 hours.
This tight trading range is likely to result in a solid breakout either in a downside or an upside direction. If the bulls manage to push the price above the 20-day EMA at $1,878, ETH price could potentially break above $1,900 and test its resistance near $1,960. A successful rise from this level will push the price towards $2K.
On the other hand, if the price reverses and drops below the 100-day EMA, it would be a signal that the bears are getting control. In this scenario, the price may continue to fluctuate within the wider $1,624 to $1,800 range for an extended period of time.