The Ethereum price is strictly confined within a narrow range, bounded by the upper limit of the falling flag and the 100-day moving average. However, this tight range is about to be broken, indicating an imminent direction for your next move.
Technical analysis
By Shayan
the daily chart
Approaching the daily chart, Ethereum has been struggling with the 100-day moving average for an extended period, failing to break below it. Currently, the price is within a tight range between the 100-day moving average at $1,814 and the upper trend line of the falling flag at roughly $1,880.
However, the price is about to break out of this critical range, which will determine the trajectory of its next move. If it breaks above the downtrend line, Ethereum price will target the significant resistance zone around $2K. Conversely, a drop below the 100-day MA will lead to a cascade towards the next support level at roughly $1.7K.
The 4 hour chart
Shifting focus to the 4-hour chart, it becomes apparent that Ethereum has been trapped within a consolidating range, bounded by the static resistance zone at $2K and the static support region at $1.7K. This range has persisted for several months after failed breakout attempts.
However, Ethereum price also finds a dynamic support level at the lower boundary of the ascending channel, currently at $1.8K. The cryptocurrency is likely to remain confined within this consolidation range until the market reaches a calm state and the SEC-Binance issue is resolved.
During this period, extra caution is essential if engaging in futures trading.
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