Ethereum price has reached a key resistance level following the recent bounce and recovery from the $1100 area. ETH’s short-term price action now depends on the reaction to this key level.
Technical analysis
By: Edris
The daily chart:
On the daily time frame, the price finally reached the upper limit of the large symmetrical triangle after consolidating for a couple of weeks.
The price tested the $1800 level and the upper trend line of the triangle yesterday, but has been rejected. However, there is still a considerable probability that the price will break the mentioned resistance area, which could lead to a rally towards the $2400 mark.
However, should a bearish pullback occur, the 50-day and 200-day moving averages could provide support in the $1,450-$1,500 range, respectively.
The 4 hour chart:
Looking at the 4-hour chart, the price has been rejected from the upper bound of the triangle with high precision. Currently, the market is testing the $1680 level, which has become support after being broken to the upside.
Should the $1680 level fail to support the price, the $1500 range would be the next likely target for a deeper pullback.
The RSI indicator, which has signaled a possible rejection with a clear overbought signal, is still showing values above 50, showing that the bulls are still in control and that a bullish continuation may be the most likely outcome.
However, the current structure can change drastically if the RSI falls below 50 and the price breaks the $1500 level on the downside. In this case, a deeper drop towards the $1350 support level would be expected.
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