Ethereum Prices Hovering: Should Traders Short ETH?

• Ethereum [ETH] was trading at $1832 at press time and has been in a lower timeframe downtrend since 17 July.
• A bounce in ETH prices searching for liquidity near $1850 was a possibility.
• Data from Monday revealed heavy selling pressure when ETH slid toward $1800, which indicated short positions were opened en masse.

Current Price of Ethereum

Ethereum [ETH] was trading at $1832 at press time and has been in a lower timeframe downtrend since 17 July.

Potential Reversal

A bounce in ETH prices searching for liquidity near $1850 was a possibility. The lack of volatility meant traders looking to enter the market can wait for more favorable conditions.

Monday’s Trading Data

Data from Monday revealed heavy selling pressure when ETH slid toward $1800, which indicated short positions were opened en masse. This highlighted a liquidity hunt on 1 August from just beneath the range lows. In the week since, liquidity has likely built up just above the $1850 level, as it offered a clear lower timeframe invalidation for the bears. Therefore, an ETH move to the $1850-$1870 region in search of liquidity was possible. It would likely be followed by a swift bearish reversal.

Technical Indicators

The OBV showed that neither the buyers nor the sellers were dominant since 17 July, but the price action has been in a downtrend. The RSI also showed bearish momentum and had the upper hand in recent weeks.

Should Traders Short ETH?

To answer this question depends on each individual trader’s risk tolerance and strategy; however it is important to note that while there may be potential for Etherum’s price to move higher or lower depending on market sentiment and technical indicators, caution should be taken when entering any trade due to potential risks involved with crypto trading markets