Following the latest increase in the overall crypto space, Ethereum currently holds a 17.4% share of the overall market cap, with a 4% gain in the past seven days, as CoinMarketCap data. The price has continued to move sideways and has yet to rally significantly after the merge.
Ethereum has been forming a lower low and lower high pattern since August. This pattern suggests a bearish trend for the ETHUSDT pair. Another indicator of this bearish pattern is the formed descending channel which has trapped price actions for a couple of weeks.
Although the bearish scenario is now suspended to a sideways movement after dropping to the channel’s lower boundary on September 21, suggesting a lack of interest.
The daily volume indicator also shows a continuous decrease since Ethereum found base support at the $1,000 level in the mid-year. This indicates bearish exhaustion in the market.
Last week, ETH price dropped sharply to a low of $1,190 and recovered quickly to close the week above a fundamental level of $1,300. The price has further increased, and it is now trading at the $1,327 price level.
Today, the price is in favor of the bulls. We may witness more gains if the bulls continue to show strength from a short-term perspective. However, the next coming days would determine how strong the buyers’ commitment is to keep the price up.
If they fail, the bears will take over again. That is what we should expect for now until we see a significant rally in this market.
Ethereum Price Analysis (ETHUSDT) – Daily Chart
If the bulls push higher, the first resistance level can be found at $1,384, recorded as last week’s high. The further increase can send ETH price to a critical grey area of $1,412 and $1,469, located around the channel’s upper boundary.
A break above this area would validate a bullish trend. The next bull target would be the $1,556 and $1,726 resistance levels.
The $1,300 level is currently held as support. If it fails to provide support, the $1,271 and $1,194 would be next to keep in mind.
Key Resistance Levels: $1,384, $1,412, $1,469
Key Support Levels: $1,300, $1,271, $1,194
Spot Price: $1,327
Trend: Neutral
Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Follow us on Twitter @thevrsoldier to stay updated with the latest Metaverse, NFT, A.I., Cybersecurity, Supercomputer, and Cryptocurrency news!
Image Source: Choong Deng Xiang on Unsplash // Image Effects by Colorcinch
