Ethereum price analysis is following the majoritarian theme in the crypto market i.e. consolidation. From Bitcoin to altcoins, all the charts are hinting at consolidation in the form of sideways movement on the charts. Currently, the ETH/USD pair is trading near $1,711 with a neutral bias. Ethereum is oscillating barely above the $1,700 mark and the bulls are maintaining the lead when it comes to price action with a narrow movement range.
The rising price channel has narrow slope but is still bullish in its approach. The bullish pattern would continue to move as traders progress into the next week. The immediate resistance up ahead would be $1,800 where the sellers can pressurize the pair lower as per Ethereum price analysis.
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Ethereum price movement in the last 24 hours: Modest consolidation is the theme
The Ethereum price analysis suggests that the pair is moving in a tight range between $1,669 to $1,716 on today’s daily chart. The sideways movement can be termed choppy with a mildly bullish bias. The price has recovered from the $1,669 lows and is extending towards $1,770 level where aggressive selling can result in profit taking.
The RSI is above 60 level which means the bulls are comfortable on the technical front. The rising wedge pattern in the longer time frame charts shows that the ETH bears are booking profits on every dip lower according to Ethereum price analysis. Does that mean the a bullish rally is on the cards? Well, if the bulls make a comeback with massive volumes, there can be a swift move beyond the $1,800 level. As reflected in previous Ethereum price analysis, the higher highs are certainly a welcome positive pattern on the charts.
ETH/USD 4-hour chart: Major resistance at $1,750 is test of bullish rally
The swing high at $1,780 is the ultimate test for the bulls on an hourly scale. The retracement level comes from the $1,004 low price point posted in July earlier this year as per Ethereum price analysis. So, the swing high also meets with the 50 percent Fib retracement level and is a good reflection of the price movement on the hourly charts.
The massive green candlestick near $1,600 level shows that the bulls are ready to buy another dip. A week of consolidation is enough to spur the bulls back into action and avoid any downside momentum build up. However, the $1,780 barrier has been a strong pullback price pivot point the recent past. A sustained buying pressure can turn the tables on the short sellers and take the price decisively above the $1,855 region. Both the RSI and MACD indicator are mildly bullish on the hourly charts.
Ethereum price analysis conclusion: Double top pattern favours bearish correction
The hourly charts have posed another challenge to the day traders i.e. a double top pattern. The buyers won’t get a clear signal if this pattern materialises fully due to consolidation. A decisively bearish pattern, it can signify the end of the correctional rally in the ETH/USD pair. If the sellers rise up, the pair can move towards $1,590 level and move even lower in the coming week.
The bulls have to manage the price above $1,720 and close the day above this price level to keep the bullish sentiment alive. The healthy consolidation will likely give more impetus to the bulls and create a strong base near the $1,700 region. If the bulls are able to close near $1,750, the rally will intensify in the upcoming week and move towards $1,800.
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Source: https://www.cryptopolitan.com/ethereum-price-analysis-2022-08-07/