After a period of correction, the Ethereum price started to show signs of appreciation on its chart. The altcoin has managed to break out of a crucial recovery region, indicating that the bulls are attempting to regain control.
In the last 24 hours, Ethereum has seen a modest 0.2% rise in price. But on the weekly chart, it has successfully reversed most of its previous losses.
However, it is important to note that Ethereum is still trading near a vital support line, and another push from the bears may send the altcoin potentially falling below its immediate support level.
Bitcoin’s volatility has had a similar impact on most altcoins, causing them to show comparable price movements on their respective charts.
Related Reading: Bullish Signal: Bitcoin Profit-Loss Dip To October 2020 Levels
While Ethereum is currently showing positive momentum, it is crucial that the buying force increase to sustain the uptrend over the next few trading sessions. From a technical perspective, the bears still hold some control, while the bulls continue to face challenges.
Demand and accumulation levels have remained relatively low on the chart. Additionally, Ethereum’s market capitalization has declined, indicating a decline in buying force based on the one-day chart.
Ethereum price analysis: one day chart
At the time of writing, Ethereum (ETH) was trading at $1,730, showing signs of recovery in recent days. The altcoin was holding close to a significant support line at $1,717. On the upside, there was overhead resistance at $1,770. If the buying force strengthens, Ethereum can target the $1,740 level.
However, for the bulls to regain control, a move above $1770 would be beneficial. Conversely, if the current price level sees a dip, ETH could drop below the $1,717 support and potentially trade around $1,710.
Unfortunately, ETH trading volume in the last session was in the red, indicating increased selling pressure in the market.
Technical analysis
After a visit to the oversold zone, Ethereum has tried to reverse the situation. However, the demand for ETH has remained low. The Relative Strength Index (RSI) indicates a stronger selling force as it remains below the midline.
Furthermore, the price of ETH has moved below the 20 simple moving average (SMA) line, which suggests that the sellers have been driving price momentum in the market.
In line with other technical indicators, Ethereum showed sell signals on the chart. The moving average convergence divergence (MACD) showed a red signal, indicating bearish price momentum.
Although it is worth noting that the signals were waning, which suggests a potential change in price in the next few trading sessions.
On the other hand, the Chaikin Money Flow (CMF) indicated a decline in capital inflows as it remained below the midline. This decline in ETH buying interest may further contribute to bearish sentiment.
Featured Image from Unsplash, Charts from TradingView.com
