Ethereum broke out of a channel and remained indecisive for days following a steady increase to a monthly high. The trend still looks bullish but seems a correction is underway.
Since the price touched $1,680 last week, Ethereum is yet to make a major move above that level as the price slowly drops. In mid-week, the price bounced a bit to retest the $1.64k level but saw a rejection again and kept losing momentum.
Although the current selling pressure is still moderate as it could get high if volatility increases in the future. The price is now positioned in a downward direction with a potential sell signal. The ascending trend line is likely to serve as support if a retracement occurs.
Ethereum’s trend is still much in favor of the bull at the moment, but it appears they may lose it to the bears soon. The $1,500 level remains a crucial point to watch for a serious breakdown. A look at the market structure suggests that ETH is brewing for a correction in the coming week.
If the current bearish signals fail to come into play, an increase above last week’s high would confirm a continuation of the monthly bullish movement. So far, the price trades around $1567 with a daily 2% loss.
Ethereum Key Level To Watch
While the price has remained weak over the past 24 hours, the closest support level to keep in mind for a correction is the mentioned breakdown level. A drop below this level could trigger more dip to $1,400. Below this level lies $1,350 and $1,300, where a rebound is likely.
If Ethereum finds support nearby and manages to bounce back, the resistance level to watch along the way up is $1,600. The last week’s resistance remains a vital breakout level for more upside movement. A significant surge above this resistance would trigger a big rally toward $1,788 and $1,950.
Key Resistance Levels: $1,678, $1,788, $1,950
Key Support Levels: $1,500, $1,403, $1,350
- Spot Price: $1,570
- Trend: Neutral-Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Image Source: nexusplexus/123RF // Image Effects by Colorcinch
Source: https://nulltx.com/ethereum-price-analysis-prediction-jan-31st-eth-showing-signs-of-weakness-amid-bullish-is-correction-underway/