At the time of writing, ETH was priced at $1,870. The daily chart indicated a potential breakout when the price approached the upper limit of a rectangular pattern. The crucial overhead resistance for Ethereum was identified at $1,880.
If the price manages to break above this level, it could potentially break above $1900 and ultimately reach the $2000 milestone.
However, it was essential for ETH to break above the $1880 mark in the coming trading sessions. On the downside, there was a local support level at $1,820. A drop below this point could lead to a decline towards $1,770.
Technical analysis
The inability to break above the $1900 level had a detrimental impact on investor sentiment, resulting in continued challenges for Ethereum regarding demand on the daily chart. The Relative Strength Index (RSI) remained positive, although it suggested a relatively low level of demand.
Furthermore, Ethereum’s current position below the 20 SMA line indicates a decline in buying force, indicating that buyers were gradually losing control of price momentum.
In addition to the low buying force, ETH also saw a decline in capital inflows. This indicated a decline in investor interest, as evidenced by the Chaikin Money Flow indicator.
Conversely, the Moving Average Convergence Divergence (MACD) formed red decreasing histograms, suggesting a possible breakout in the upcoming trading sessions. The MACD is a useful tool for identifying price momentum and trend changes.
The upcoming trading sessions will be critical for ETH. It will determine if the market will be driven by bears or bulls, which will ultimately influence the price.
Featured Image from UnSplash, Charts from TradingView.com
