Key Indicators to Prevent ETH Price Drop Below $1,800

TL; DR

Network growth and an increase in ETH holding among whales is preventing its price from falling below $1,800.

Between 4 and 20 July there was a 49% increase in ETH’s wallet addresses.

$1,900, $2,000, 2,100 and $2,300 are some of the key ETH resistance levels.

Introduction

Most crypto markets are moving sideways showing lack of investor appetite in the various cryptocurrencies. From time to time, however, their prices rise or fall depending on developments in the market. For example, in the second week of July the positive SEC vs Ripple ruling was a catalyst for a surge in prices of several major cryptocurrencies including Cardano (ADA), Ripple (XRP) and Binance Chain coin (BNB).

In this article we discuss the performance of the Ethereum coin a week after its recent surge.

Ethereum (ETH) Price Holds Strong at $1,800

Although Ethereum surged to $2024 on 14 July it did not maintain its upward momentum resulting in a fall in its value. For instance, on 20 July there was an Ethereum price drop to $1,875, a few cents below the $1,900 resistance level. However, that intraday price ($1,875) came after ETH spent the previous six days trading in red.

Remarkably on 20 July, the value of Bitcoin spiked, creating short-lived hope for crypto traders that prices of other cryptocurrencies like ETH would also rise. Significantly, on Thursday 20 July ETH attained a high of $1,927.57 and a low of $1,883.07, which marked the day’s trading channel.

As said, the ETH’s price movement on 20 July created hope that it would surge above $2,000 at any time in the near future. As things stood at that time, the $1,960 price level held much significance as it was the main test for the Ethereum bulls. A break above it would push the ETH price beyond $2,000. The following diagram shows Ethereum price movement for a 30-day period that stretched from 30 June to 29 July.

As seen in The Graph, 14 July was a special day when the price of ETH rose to $2,012.46. Nevertheless, the ETH price was in a downtrend from 15 to 24 July when it attained a 14-day low of $1,844.20.

As you have noticed, most of the time the ETH price fluctuated between $1,850 and $1,950. Definitely, both $1,850 and $1,950 are critical support and resistance levels. If the price of ETH rises above $1,950 it is most likely going to surpass $2,000.

Considering the existing trend, within the third week of July it was unlikely that the price of ETH would drop below $1,800 unless there was a strong catalyst for that. The last time that the value of ETH fell below $1,800 was on 10 June 2023. However, it was able to make a rebound after only 11 days as it rose above $1,800 on 21 June. The next graph shows ETH’s price movement for that period.

It is also important to note that the bulls are now defending the $1,900 level after the $2,000 resistance level rejected any further price rise. This is because a cohort of whales are exerting much buying pressure to safeguard their long positions. If they continue to buy Ethereum its value may rise above $2,000.

Notably, on 19 July an Ethereum whale moved 61,000 ETH valued at approximately $120 million to Kraken crypto exchange, a sign that he/she might want to sell them. In contrast, another cohort of Ethereum whales purchased much Ethereum. They might have intended to neutralize the effects of high selling pressure. With such ETH movements, it is not definite if ETH will be able to hold the $1,800 support level.

Read also: What is the Ethereum Shanghai Upgrade?

Will Bull Whales Counter the Selling Pressure?

Data on Santiment shows an increase in the quantity of ETH which some whales have been accumulating in the recent past in a bid to offer bullish support. For instance, some whales who used to hold 100,000 to 1 million ETH coins added 150,000 ETH, with a value of about $288 million, during the period between 15 and 20 July.

By comparison, the bull whales have maintained a position to neutralize impending ETH sales like the 61,000 ETH. With this, the retail investors can take the side of the ETH bull whales to maintain the $1,800 support level. And there is no reason for the ETH traders to panic in the short run. What this means is that ETH has a chance to rebound above $1,900 even if bear whales sell 61,000 ETH.

Network Growth

Apart from the above discussed developments, there was growth in the Ethereum network since 5 July. According to some analysts the increase in bullish Ethereum whales and the associated rise in buying pressure as well as the growth of the Ethereum network are likely to help Ethereum to maintain the $1,800 support level.

For example, the number of new ETH wallet addresses increased from 60,923 to 90,173, which is a 49% growth in Ethereum network. As a fact, network growth refers to the rate of increase in the number of new wallet addresses.

An increase in the number of new wallet addresses created is a bullish signal and vice versa. If the new users purchase more ETH for various purposes like staking, peer-to-peer payments or for minting NFTs the demand for the coin is likely to increase above $2,100 in the very near future.

However, should the ETH bearish momentum increase the price of ETH may fall below $1,800. Likewise, consideration should be given to the 3.44 million ETH holders who have a total of about 4.5 million with an average price of $1,860. If they buy more coins, the ETH price may increase.

Key Support and Resistance Levels

Let’s conclude by discussing a few key support and resistance levels to watch within the short run. Apart from the $1,800 support level which the ETH price has bounced from recently, there is also the $1, 700 level, marked by a 50-day moving average. If the price falls below this support point that marks a change in trend.

On the other side the key resistance levels are $1,900, $2,000 and 2,100. If the Ethereum price surpasses the $2,100 that is a sign of a medium-term uptrend. Moreover, after the $2,100 level the next major resistance line is at $2,300. An increase in ETH investments may push the price of ETH above $2,300. Also, if we experience a bull market any time soon, its price may also shoot upwards.

Conclusion

It is long since the ETH price has fallen below the $1,800 resistance level. Although there is mounting selling pressure some bull whales have been accumulating ETH. This has prevented its price from falling below $1,800. In the meantime, ETH is also failing to hold its momentum above the $2,000.

FAQs About Ethereum

Has Ethereum got a future?

Ethereum (ETH) has a bright future since it is a utility token that drives the Ethereum network. It also powers many decentralized applications that exist on the Ethereum blockchain.

Will ETH go up in 2023?

The price of ETH is likely to go up and trade between $2,100 and $2,300 by the end of 2023. However, it will have minor fluctuations throughout the remainder of the year.

How much will 1 Ethereum be worth in 2030?

The price of 1 Ethereum is likely to range between $5,000 and $10,000 by 2030. However, its value will depend on various factors like the global economic situation, its adoption rate and the existing crypto regulations.

What is Ethereum price till now?

The price of Ethereum is currently fluctuating between $1,800 and $2,000. However, it has a potential of surpassing $2,000 in the near future. If selling pressure increases its value may fall below $1,800.

What is Ethereum price prediction 2025?

The price of Ethereum is likely to fluctuate between $3,000 and $5,000 by 2025. Its exact value will depend on various factors like its adoption rate, crypto regulation and the global economic situation. Read also: Ethereum Price Predictions for 2023, 2025 to 2030