Ethereum is still undergoing correction. It recently bounced off a low to retest a key resistance line before resuming bearish. However, the price remained intact in a five-month broadening wedge.
Ethereum’s price movement has been in correlation with Bitcoin for some months now. During last week’s meltdown, it sold off to $1,740 and recovered quickly above $1,790. It opened around $1,800 yesterday and stayed above it up till now.
Looking at the broadening wedge that is forming on the daily chart, it is evident that the bears are still in control despite the recent price recovery.
Compared to the bearish impulsive move that started last month, Ethereum’s retracement movement lacks adequate volatility to power up the price well. That does not stop it from retesting the $1,900 level if the descending resistance line holds – though it may take longer than expected.
However, it is essential to note that ETH is still in the heat of a correction as the price draws near the lower boundary of the wedge. This boundary is where a major rebound is expected to take place in the next leg down.
Should the ongoing buying leads to an increase above the descending resistance line, the asset could resume bullish at full speed, suspending the mentioned rebound area for another day.
ETH’s Key Level To Watch
As of now, ETH is eyeing the $1,883 level that the price went through last week. The resistance level to watch above the resistance line is $1,948, followed by $2,000 and $2,030 where it initiated a second leg down earlier this month.
While the $1,788.4 level serves as immediate support for days, the level to watch next is $1,722.9 if a breakdown occurs. The $1,678.9 level is the next support to keep in mind for a test.
Key Resistance Levels: $1,883, $1,948, $2,030
Key Support Levels: $1,788.4, $1,722.9, $1,678.9
- Spot Price: $1,815
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: foryou13/123RF // Image Effects by Colorcinch
