Ethereum’s bullish move falters at a crucial price barrier, with sellers looking to take profits.
ETH bulls are looking to hand control back to the sellers after the price was rejected by the resistance level.
Despite the selling pressure, bulls are likely to revive.
Ethereum’s [ETH] bullish move that started from the $1,619 support level in early October was quickly curbed by bears at the $1,745 resistance level.
An AMBCrypto price report on Oct. 6 stated that bulls could hit a major hurdle near the $1,750 price area. ETH bulls suffered a major rejection at the resistance level, validating this analysis.
Although Ethereum found temporary support at the $1,619 level, indicators on the chart suggest further bearish activity.
After bullish bounce, sellers look to regain control
CMF (Chaikin Money Flow) highlights the massive outflow of funds from ETH. It fell from +0.11 to -0.06, which may be due to profit-taking by ETH investors.
This has resulted in a reduction in buying pressure and the RSI (Relative Strength Index) moving from the upper to lower boundary. Likewise, the OBV (On Balance Volume) continues to trend downwards, which could further limit the chances of a continuation of the bullish uptrend.
Therefore, the selling pressure may persist, resulting in a breakout of the $1,619 support level. This will provide sellers with a 5% profit opportunity, with the $1,550 support level acting as a bearish target.
The Bulls still have a chance to rebound
The market value to realized value (MVRV) ratio reveals the contrast between short-term and long-term holders. According to Santiment, the 30-day ratio shows that short-term holders have made small profits. However, the 90-day ratio shows that long-term holders are still in negative territory.
This suggests that the bulls may still rebound from the support levels, while long-term holders are unlikely to join the selling wave.