Ethereum prices trapped below $1.920, will $2,000 be next?

Ethereum’s price was near $1905 as the daily and 4-hour bands tightened, placing the $1920 resistance at its center.

Ethereum Price Tightens Inside a Symmetric Triangle

Crypto.news reports that Ethereum (ETHPrice was $1,904.89, after trading between an intraday high of 1,914.38 and a low of $1885.78. The price fell by about 0.5% but was still within the tight range set since late July.

Ether’s recent lower lows and higher highs have produced a symmetrical triangular pattern on the daily graph. The upper boundary of the triangle has moved from about $1.980 towards $1.920. Meanwhile, the lower boundary of this triangle has increased from approximately $1.800 to $1.880.

The price has moved to the apex of the triangle, and the shrinking distance between the two boundary lines usually precedes an upward move. Formation remains neutral until ETH is outside of either trendline. This means that confirmations are more important than intraday movements within the pattern.

The momentum readings do not provide a clear direction. Daily Aroon was weak with one reading at 21.43 % and another at 0%. This reflects a recent low or high that is not very strong.

Chaikin money flow was -0.03, just below neutral. Readings show that the selling pressure is slightly in favor, however it’s not enough to indicate a large capital flight.

Ether has been unable to move higher due to the fact that large holders have reportedly disposed of around $3 billion worth of ETH in the past 10 days. In recent months, the volume of trading on decentralized exchanges also decreased by around 42%. Meanwhile, a Coinbase Premium Index that is negative indicates a weakening demand for US-based buyers.

The chart shows $1,909 in the focus and $1,870 at $1,870.

The 4-hour chart shows the immediate struggle between $1,908.59 Supertrend Resistance and $1,869.92 Support. Ether briefly rose above $1,905, but at the time the chart was taken it had yet to close a candle over the Supertrend upper level.

If $1,909 is confirmed, the bearish short-term signal will be weakened and $1,920 would come into focus. ETH has struggled repeatedly between $1,915 to $1,930. That area is the first significant test for buyers.

The Stochastic RSI is also turning lower as it approaches overbought territories. The two lines were at 46.26 & 57.38 respectively, the faster line being below the slower. Crossover shows short-term momentum has cooled in the last push towards resistance.

The oscillator is still near its middle range and not in the oversold zone. Bulls can regain momentum by holding ETH above $1.890 and breaking through $1.909.

If the Supertrend barrier is not cleared, the price will remain exposed at $1,890 and then the $1,870 Support Line. If the 4-hour price closes below $1.870, it will weaken higher lows, and move attention to $1,850.

Ethereum Liquidation Map Points to $1.925

CoinGlass’ heatmap for the three days of liquidation shows the highest concentration of leveraged trades above the markets between approximately $1925 and $1930. Additional liquidity appears around $1,940–$1,950 and close to $1,980.

Short positions could be forced to close if the price moves above $1,920. Such liquidations may add market buying and help ETH accelerate toward the $1,940–$1,950 region.

There are several areas of liquidity on the downside. The closest cluster sits around $1,885–$1,890, followed by stronger concentrations near $1,870 and $1,860.

Price briefly fell to $1,885 on August 18th before rising above $1,900. This rebound indicates that buyers are still active in the area of lower liquidation bands, but repeated testing could weaken this defense.

If ETH falls below $1.885, it could be pushed toward $1.870 which is aligned with the support of the Supertrend 4-hour chart. Technical support and liquidity overlap, making $1.870 the primary short-term invalidation point for bullish setup.

Analysts set $2,000 as their target after $1,920’s breakout

Analyst Michaël van de Poppe said Ethereum was stuck in an area and did not match Bitcoin’s bigger move. He said $1,920 was the level of resistance that would unlock a greater advance.

“However, once it cracks through the resistance at $1,920 I would assume we’re going to see a big move happening towards $2,000 here.”

He has set his target to coincide with the daily chart where $2,000 is located above the triangle, and the recent swing-highs. ETH must first clear the $1,920 to $1,950 supply zone before reaching that target.

According to analyst Ted Pillows, the weekly closing price above $2,500 will confirm that Ethereum is no longer in a bear market. A close of this magnitude would enable ETH’s 200-week moving averages to be reclaimed, as shown in his chart.

This condition is still well above current prices and has no impact on the range. This shows that a breakout above $2,000 is more likely to be an indication of a short-term recovery than a long-term trend change.

US flows are still a problem for Ethereum

US-listed Ethereum spot exchange-traded funds recently recorded Net outflows of $2.26m, ending a streak of inflows that lasted for several weeks. Coinbase’s negative Coinbase Premium also indicates that US Demand hasn’t yet been strong enough to propel ETH beyond its current resistance.

Investors have been waiting anxiously for Federal Reserve minutes since the US inflation rate slowed down to 3.4%. Ether’s demand could be affected by any indication that the Federal Reserve is moving towards lowering interest rates.

Ethereum is currently compressed by nearby liquidity. The move towards $1950 or $2,000 would be favored by an extended break over $1920, whereas a decline of $1870 followed by rejection would reveal $1850, and possibly $1800.