Ethereum bulls face strong resistance despite the fervor of ETH 2.0

Ethereum experienced a short-term price slump over the weekend after momentum stalled around the $ 475 resistance level. The ETH / USD pair subsequently recovered above the $ 450 level and found a strong support just below the $ 440 level.

With the launch of ETH 2.0, investors are increasingly confident that further price appreciation can occur as deposits and demand for ETH continue to rise.

However, technical analysis shows that ETH bulls need to break out of the $ 475 level this week to stop the potential formation of a bearish double top price pattern.

If this short-term bearish scenario occurs, the ETH / USD pair could face severe selling pressure towards the lower end of its recent range near the $ 425 to $ 415 area.

If ETH buyers manage to break out of the $ 475 resistance level this week, a July 16, 2018 test is very likely.

If the psychological barrier of $ 500 is breached, traders would see a break towards the $ 515 and $ 550 resistance zones, respectively.

Interestingly, the Williams Alligator indicator, a key trend-based indicator, is still issuing a strong buy signal, indicating further gains as long as the price remains above $ 450.

Chain withdrawal transaction data currently shows a trend of decreasing withdrawals versus rising price, implying that traders hold their coins for long-term gains. This metric is used by traders to show the amount of all inbound and outbound transactions involving ETH withdrawal addresses.

A sharp bearish spike in foreign exchange withdrawals suggests slight selling pressure for altcoin number two.

Data analysis from the on-chain behavioral platform Feeling it also shows that since November 9, Ethereum addresses holding 10,000 to 1,000,000 coins have begun to accumulate their balances again.

This metric suggests that some whales have begun to accumulate more coins towards the launch dates of ETH 2.0.

Addresses with more than 1,000,000 coins appear to have continuously increased their wallets, which could lead to pressure to buy Ethereum in the following days.

Given the strong on-chain data surrounding Ethereum and the increase in bullish sentiment since the launch of ETH 2.0, it is fair to expect more near-term price pressure if the ETH / USD pair holds above the $ 440 to $ 440 area. $ 450.