Published 6 seconds ago
Since Mid-June, the Ethereum(ETH) has been wobbling between the $1261 to $1000 mark. The consolidation indicates aggressive buying and selling on their respective barriers, reflecting a range set up in the technical chart. Thus, this range can be considered a no-trading zone, and traders may wait for a genuine breakout from the mentioned resistance to trigger a directional rally.
Key points:
- The ETH price reclaimed dynamic resistance of the 20-day EMA
- The rising RSI reflected growth in underlying bullishness.
- The intraday trading volume in ETH/USD is $612.27 Million, indicating a 38.5% fall.
Source- Tradingview
On June 26th, the ETH recovery rally failed to surpass the $1261 resistance, indicating weakness in bullish commitment. Thus, the resulting reversal plummeted the altcoin by 21.8%, hitting the $1000 psychological level.
However, the ETH price shows sustainability above this level, reflecting the traders actively accumulating at this level. As a result, the buyers managed to propel the market value higher, triggering another recovery rally.
The ETH price has surged 18% since last week, currently trading at $1214. However, in June, the coin chart showed a red candle with a long wick and tails, indicating weak bullish momentum.
Thus, another reversal from this resistance would indicate the market is still uncertain, and the price continues to consolidate in a range.
However, a potential breakout from the overhead resistance may trigger a directional rally, reflecting its first target of 11.5%, higher at $1425.
Technical indicator
Supertrend- the supertrend indicator represents an overall downtrend in the daily time frame chart.
RSI indicator- despite a short-term lateral walk-in price action, the RSI slope climbing higher suggests rising bullish momentum. This bullish divergence indicates the ETH price has a better possibility of breaking the overhead resistance.
EMAs- The fast-moving 20-day EMA is flipped into viable support, trying to prevent a bearish reversal. However, a breakout down this support would give a suitable confirmation for downfall to $1000.
- Resistance levels: $1261 and $1425
- Support levels: $1130 and $1000
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/ethereum-price-analysis-potential-reversal-may-extend-eth-range-rally/