Can Ethereum Coin’s Escape From Market Uncertainty Hit $2000 Target?

The Ethereum coin price has been stuck in a minor consolidation phase for the past three weeks, stretched from $1677 to $1500 levels. The coin currently trades at $1649 and continues to face rejection from the $1677 barrier. This overhead selling pressure may encourage a prolonged correction, but the narrow range being part of a cup and handle pattern keeps the bullish trend intact.

Key Points: 

• In theory, the cup and handle pattern is a famous bullish reversal pattern offering a significant bull run upon the breakout of its neckline resistance.
• The RSI indicator value still wavering above the midline indicates the market sentiment remains bullish.
• The intraday trading volume in Ether is $5.8 Billion, indicating a1 3.2% loss.

Source- Tradingview

The last three months’ price action in Ethereum coin price has shown the formation of a cup and handle pattern. It is displayed a steady u-shaped recovery, ‘cup,’ followed by a minor consolidation shaped, ‘handle.’. As mentioned above, the ETH price is currently stuck in a minor consolidation or, say, handle portion.

On February 2nd and 4th, the daily chart showed higher price rejection at the $1677 barrier indicating the sellers continue to defend this resistance. Thus, if the selling pressure, the Ethereum price may revert from this resistance and continue to consolidate in a narrow range.

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Thus, the traders looking for an entry opportunity should wait for the Ethereum price to break the $1677 neckline resistance. A daily candle closing above the mentioned ceiling would release the trapped bullish momentum.

In a favorable bullish scenario, this breakout could drive ETH price to potential targets of $1800, $2000, or $2300.

On a contrary note, if the ETH breaks $1500 amid this consolidation, the coin price may enter a correction phase.

Technical Indicator

RSI: the falling daily-RSI slope hints at the exhaustion of bullish momentum and encourage the prolonged sideways trend.

EMAs: the 50-and-200-day EMA assembled at the $1500 mark creates a high area of interest zone coin buyers.

Ethereum Coin Price Intraday Levels-

• Spot rate: $1656
• Trend: Bearish
• Volatility: Medium
• Resistance level- $1680 and $1800
• Support level- $1500 and $1370