Table of Contents
April has been tough for Ethereum (ETH) buyers with the second largest cryptocurrency coming under intense selling pressure.
Since April 9, ETH’s price has steadily declined from the heights of $3.7k before finding a bottom at the $2.9k price zone.
Over the past three days, this support level at $2.9k has produced a bullish rebound, pushing ETH back above $3k. However, the buying pressure seems to have waned with ETH unable to push past the resistance level at $3.2k.
This offers sellers another shorting opportunity for short-term gains with multiple chart indicators leaning toward bearish price action.
Blockhead
ETH Stays in the Red
Analyzing ETH’s price action on the four-hour timeframe showed that buyers have struggled to scale the selling hurdle at $3.2k. The first attempt at scaling the hurdle on April 15 was met with a swift rejection with price dropping by 9%.
This second attempt by buyers to scale the price ceiling at $3.2k also looks to have run out of buying pressure with another rejection. Thus, sellers can look to open short positions with the aim of driving price down to the $3k level in the near term.
This would offer profit opportunities between 8%-12%. However, sellers must be mindful of sentiment flipping quickly to bullish, in the event that Bitcoin reclaims the $70k price level.
Meanwhile, the Relative Strength Index (RSI) dipped toward the neutral 50, indicating a slow down in buying strength while the Moving Average Convergence Divergence (MACD) posted a bearish crossover, as of the time of writing.
Can Ethereum ETFs Reverse the Selling Trend?
On April 15, Hong Kong approved applications for spot Bitcoin and Ethereum ETFs (Exchange Traded Fund). However, the US SEC continues to delay approval for Ethereum ETFs, despite their approval for Bitcoin ETFs.
The classification of Ethereum as a security remains a disputed topic for regulators in the US but crypto enthusiasts are confident that the interest of financial institutions like Blackrock and Fidelity in Ethereum ETFs would see the SEC reach a positive outcome.
If Ethereum ETFs get approved in the US, it could bring in new capital, resulting in a sustained price rebound for ETH.
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.
%20Shorts%20Can%20Profit%20From%20Decline%20in%20Buying%20Pressure){kind=link}