Last week saw Ethereum through a consolidation phase after failing to extend short-term bullish above last September’s high. The continuous rejection could lead to a retracement if the momentum remains weak.
Earlier this month, ETH bounced off the $1,370 level and increased significantly by more than 35% to reach a local peak of $1,857 a few days ago. The rally eventually halted and entered a consolidation phase in the past weeks.
The past weekend’s trading came with low volatility following several rejections from the recent peak level – rejected the $1.8k level. The thug of war between the bulls and the bears has continued to subject the price to an indecisive condition.
A look at the ascending channel pattern indicates a bullish trajectory on the daily chart. But because the price has stretched to the upper boundary with multiple rejections in the past few days, Ethereum may pull back to the lower boundary soon before initiating a fresh buy.
On the other hand, a push above the channel will set a new rally for a huge gain. The buying volume is currently low. We can see that the volume indicator is decreasing on a daily. The chances for a retracement movement are higher than impulsive.
Above all, the market structure remains neutral – bullish on a daily outlook. It lost 1% overnight with a current market cap of $ billion as per CoinMarketCap data.
ETH’s Key Level To Watch
While the November 2022 resistance level of $1,722 bolsters as support, a decrease below $1700 will increase the chances of dropping to $1,678 before losing more to $1,613. There are also supports at $1,554 and $1,500 if the price dips.
ETH currently holds minor resistance at $1788 on the hourly chart. In case of a surge, the resistance levels to watch above last week’s high are $1,883, $1948 and $1,613, respectively.
Key Resistance Levels: $1,883, $1,948, $2,030
Key Support Levels: $1,722, $1,678, $1,613
- Spot Price: $1,766
- Trend: Neutral-Bullish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: nexusplexus/123RF // Image Effects by Colorcinch
