ETH could offer a bullish relief after retesting this important level

• ETH bulls would possibly regain management after the worth drops to the 0.786 Fibonacci stage.
• Federal Reserve’s rate of interest announcement provides a layer of uncertainty.

Within the final two weeks, we noticed as ETH bears introduced the worth down. This week the market has thus far slid decrease, and notably to a stage the place we could but once more begin to see the return of some bullish momentum.

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ETH exchanged palms at $1,852 at press time and its present vary could act as a pivot vary. It is because the current promote stress pushed the worth all the way down to an essential consolidation zone. Extra importantly, the identical value zone sits on the 0.786 Fibonacci retracement line.

Supply: TradingView

ETH has already bounced again not less than two instances from the identical Fibonacci stage. This instructed that we would see a little bit of accumulation going down on the similar stage. Be aware that it’s close to the 50% Relative Power Index (RSI) stage which suggests that there’s prone to be directional uncertainty, as has been the case not too long ago.

The Cash Circulate Index’s (MFI) dip, then sideways motion provides to the uncertainty. On-chain information additionally revealed that Ethereum’s transaction depend was all the way down to its lowest stage within the final 4 weeks.

As such, the community progress has additionally tanked to a month-to-month low. This mirrored the decrease transaction depend on the community, in keeping with the noticed slowdown available in the market.

Supply: Santiment

Assessing whether or not ETH demand is increase

Glassnode’s newest information revealed that Ethereum’s median gasoline utilization is now at a four-month excessive. We normally see increased gasoline charges during times when the community experiences extra demand, and normally as costs go increased. Does this imply that demand is resuming?

📈 #Ethereum $ETH Median Fuel Utilization (7d MA) simply reached a 4-month excessive of 49,898.500

Earlier 4-month excessive of 49,805.327 was noticed on 24 July 2023

View metric:https://t.co/23i2EjKSqS pic.twitter.com/ijzUk4sXQX

— glassnode alerts (@glassnodealerts) July 25, 2023

The metric is a contradiction to the beforehand talked about slowdown in community utilization. Nevertheless, it might level in direction of a restoration. A have a look at ETH’s provide distribution does affirm that demand for cryptocurrency has been regularly bettering.

In response to ETH’s provide distribution metric, addresses holding between 100,000 and 1 million ETH leveled out between 21 and 23 July, adopted by a pivot. This class (denoted in yellow) managed 15.26% of ETH’s circulating provide at press time.

Supply: Santiment

Though some whales have been accumulating, it’s value noting that others had been nonetheless promoting. Particularly these holding between 1,000 and 100,000 ETH. This implies there was nonetheless vital promote stress at press time.

What number of are 1,10,100 ETHs worth today

ETH’s low demand and prevailing promote stress may be because of the truth that buyers had been nonetheless leaning extra on the facet of warning. It is because the Federal Reserve will announce the subsequent rate of interest resolution which can decide if the market will crash or kick begin one other bullish transfer.