Published 15 hours ago
For over a month, the Ethereum price has resonated between the $1680 and $1500 levels, creating a rectangle pattern or narrow consolidation phase. Usually, the formation of this pattern after a significant rally is considered a retesting period before the prices continue with a bull run. Thus, a breakout opportunity will be a key factor here to determine the near future price of Ethereum.
Key Points:
- On November 16th, the long higher price rejection candle at $1680 indicates the overhead supply pressure is high.
- Either side breakout from the rectangle pattern will encourage a significant rally on the respective side.
- The intraday trading volume in Ether is $11.6 billion, indicating a 3.4% loss.
Source- Tradingview
Earlier this week, the Ethereum price witnessed a strong inflow and managed to rebound from the $1500 local support. This bullish reversal pushed the coin price 12.2% higher to rechallenge the range resistance of $1680.
On February 16th, the coin showed a breakout attempt from the $1680 barrier and reached a high of $1740. However, the overhead selling pressure undermined buyers and, by the day’s end, pulled the prices below $1640.
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Thus, the resulting long-wick rejection candle accentuates the high supply pressure still existing. The Ethereum price currently trades at the $1667 mark, but if it shows sustainability below the $1680 mark, the ongoing consolidation is likely to extend for a few more sessions. In addition, a potential bearish reversal may even plunge the ETH price back to $1500 support.
Therefore, the Ethereum price needs a daily candle closing beyond the mentioned level of the rectangle pattern to kickstart a directional rally.
A breakout above $1680 will hint at the continuation of the bullish rally and may push the price beyond $1800 to reach $2000.
On a contrary note, a breakdown below $1500 will trigger a prolonged correction and may plummet the ETH price to $1350
Technical Indicator
RSI: The daily RSI slope wobbling around the midline indicates a neutral sentiment from market participants.
EMAs: the coin price trading above the crucial EMAs(20, 50, 100, and 200) indicates the buyers possess an upper hand. Moreover, the 50-and-200-day EMA near a bullish crossover may encourage a $1680 breakout.
Ethereum Coin Price Intraday Levels
- Spot rate: $1666
- Trend: Bullish
- Volatility: Medium
- Resistance level- $1680 and $1788
- Support level- $1500 and $1420
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/heres-how-ethereum-price-could-escape-ongoing-consolidation/