Steven Suttmayer, former head of technical strategy at Bank of America, believes that Ethereum could form a “tactical bottom.”
In his latest analysis report, Suttmayer said that if the price remains above $1,690-$1,700, it would support his thesis that the altcoin is forming a tactical lower level above the June lows. Another confirmation of this bottom pattern would be the $1800 retracement.
His predictions were based on technical analysis, especially using moving averages (MA) to measure shifts in short- and long-term momentum. As of press time, Ethereum (ETH) price briefly paused below the 50-day moving average (DMA).
Suttmayer added that if the 50-day EMA decisively reclaims as support (ETH price above $1,800), the next upside target would be the 200-day EMA (blue line) at $2.2K. This means 25% upside potential if the $2.1K barrier is crossed.
In fact, even Bitmine CEO Immersion Technologies and Fundstrat’s Tom Lee subscriber Suttmayer’s analysis, which means that he supports his predictions.
Well, if there is no bearish catalyst in the short term, the daily chart of ETH is more inclined towards a potential bullish reversal. It has formed a double bottom reversal pattern after the price fell below $1,600 twice in the past few weeks.
But some on-chain metrics have not been as bullish for ETH as the price charts suggest.
Selling pressure on the Ethereum exchange remains high
CryptoQuant reported a 6% increase in exchange selling pressure in the past few days as ETH attempted to rebound. More than 220 thousand Ethereum (ETH) It hit the stock exchanges, slowing the relief rally near $1,800.
The whales were significantly reducing exposure during the relief drive. As such, the short stop below the $1,800 level was not surprising. At the time of writing, whale sales have not diminished.
In fact, selling pressure in the stock market has been rising steadily since March. Hence, if the pressure continues, a “tactical bottom” could be forecast as well void.
Could ETF inflows and macro risks derail ETH?
Aside from whale pressure, demand for US spot ETFs, which significantly fueled the relief rebound in early July, has turned negative.
After seeing net inflows for five straight days, the trend broke on Thursday after Products recorded a net outflow of $52 million. The risk aversion movement came about due to the renewed Iranian-American escalation Bond market tensions.
Overall, ETH was poised to turn its short-term momentum to the upside if it decisively remained above $1,800. A potential rally of 25% may be possible if such a scenario occurs. But macro and geopolitical pressures remain significant and could weigh on the bulls.
Final summary
- ETH could reach $2,100 and offer a potential 25% profit if $1,800 is recovered decisively.
- Macro and geopolitical pressures could negate the bullish outlook, especially if escalation between the United States and Iran deepens
