Ethereum price bulls are doing everything within their power to mitigate losses after support at $1,900 caved in. The token powering the largest smart contracts token has in the last 24 hours, remained barely unchanged, and trading at $1,870. Despite the narrowing trading range, a $6.5 billion trading volume has been posted, with the market cap dropping slightly to $224 billion.
Ethereum price has formed an inverse head-and-shoulders (H&S) on the daily chart, with the possibility of an 18% breakout to $2,372.
A bullish move would be confirmed when this ‘neckline’ breaks, investors often anticipate an upward price swing, equal to the height of the pattern extrapolated above the breakout point, $2,000 in Ethereum’s case.
The path with the least resistance is to the downside for now with greater risk lurking in the shadows if bulls lose the support provided by the 50-day Exponential Moving Average (EMA) (in red).
Notably, the Moving Average Convergence Divergence (MACD) adds credence to the bearish outlook after sending a sell signal. Ethereum’s drop below $1,900 might have accentuated the call to sell, which manifested with the MACD line in blue crossing below the signal line in red.
With that in mind, shorts traders would be looking forward to lower profit targets, for instance, the 200-day EMA (purple) and the primary support between $1,630 and $1,700.
Investors have in recent months wholesomely embraced Ethereum staking both on the primary blockchain and liquid staking platforms. According to on-chain insights shared by Token Terminal Intern on Twitter, “total assets through liquid staking protocols are hitting ATH, despite Ethereum bringing -61% from the top.”
Ethereum staking eventually started to gain traction after the initial withdrawals which followed the Shapella Upgrade. Liquid staking platforms like Lido continue their dominance following the protocol upgrade that allowed investors to withdraw their staked Ether for the first time since the transition to the PoS consensus algorithm.