ETH price has been on the rise ever since it bounced back from the $1000 area and has breached multiple significant resistance levels. However, the cryptocurrency is currently showing a lack of momentum, which suggests a possible short-term correction.
Technical analysis
By: Edris
The daily chart:
On the daily chart, the price has been holding above the broken symmetrical triangle after breaking it to the upside. However, the $1800 resistance area has yet to be captured and the price has struggled to move forward.
Currently, the market is slowly moving higher after retesting the upper bound of the symmetrical triangle, but is not showing decisive momentum to get away from the $1800 level. If a correction occurs in the next few days, the upper trend line of the triangle could be tested once more, followed by the 50-day moving average and the 200-day moving average, located around the $1,700 and $1,400 marks, respectively.
On the other hand, if the price finally breaks away from the $1800 area, a rally towards the $2300 resistance level could be expected in the near term.
The 4 hour chart:
Looking at the 4 hour time frame, it is apparent that the price has been ranging in a tight range around the $1800 level, showing neither willingness to break it to the upside nor rejection to the downside. The upper trend line of the large triangle pattern could be tested near the $1680 support level if the market turns down, and could provide enough support to push the price higher.
However, a breakdown of these levels could lead to a fall towards the key $1500 area. The RSI indicator has also been relatively flat for the past few days, holding above the 50% threshold.
This sign indicates that while the bulls are still in control, their dominance may be fading, which could lead to a correction in the near future.
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