Ethereum [ETH] bulls advance for $2,000 rebuffed – what should traders expect next

• Mild bullish rally rejected at $2,000.
• Active deposits spiked over the last 48 hours.

Ethereum [ETH] recorded an 8.7% gain in the past 48 hours before its bullish momentum was halted by the price rejection at the $2,024 price area.

Read Ethereum’s [ETH] Price Prediction 2023-24

The bullish rally followed Bitcoin’s [BTC] reclaiming of the $29k price zone. However, the selling pressure in the last 24 hours saw ETH’s price dip to $1,908, as of press time.

Will this curtail the second-largest cryptocurrency’s bullish momentum?

Ethereum bulls rise to the occasion

Source: ETH/USDT on Trading View

ETH made a YTD-high of $2,127 in mid-April. However, the bearish order block at that level halted more bullish gains. This led to price dipping to the $1,820 price zone. Subsequent bullish rallies were thwarted with the price stuck in a consolidation range between $1,820 and $1,955.

BTC’s rally to $29k provided the needed momentum for another bullish rally with ETH briefly touching the $2,000 psychological price zone.

The Visible Range Volume Profile provided insight into what ETH’s next move might look like. The Value Area High (VAH) stood at $1,940 while the Value Area Low (VAL) stood at $1,762. With price bouncing off the Point of Control (red), bulls could get ready to make another approach for the $2,000 price zone.

The RSI dipped from the overbought zone but made a recovery to the neutral 50 mark. The Awesome Oscillator also gave mixed indications with no clear signal for either bullish or bearish momentum.

Traders can watch out for a daily candle close above $1,940 – $1,960, as this could offer buying opportunities. Alternatively, aggressive bears can wait for rejection at the VAH for more shorting opportunities.

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Mixed signals in the futures market

Source: Coinglass

Data from Coinglass showed that longs had a slight 51.07% advantage in the long/short ratio on the four-hour timeframe. However, the spike in the active deposits on exchanges in the last 48 hours suggested that a strong base of ETH holders were still looking to benefit from short positions at press time.

ETH traders should keep an eye out for price accumulation around the $1,920 – $1,970 price range, as this could signal the coin’s next move.

Source: Santiment