• Ethereum has recently broken the 200-day moving average and the multi-month channel’s upper trendline, however it is now consolidating beneath a major resistance level of $1.7K.
• There is a substantial bearish divergence between the price and RSI indicator on the daily timeframe which could lead to volatility in the coming days.
• Ethereum has three critical static levels: $1.7K major resistance level, $1.3K minor support level, and $1K major support level.
Ethereum Price Analysis
Uptrend Halt After Reaching Major Resistance At $1.7K
Ethereum’s uptrend has been halted after reaching the major resistance at $1.7K. The price action seems choppy, while a short-term correction is what many expect.
Technical Analysis
By Shayan – Ethereum has surpassed the 200-day moving average and the multi-month channel’s upper trendline due to the recent bullish move of the whole market. However, there is a substantial bearish divergence between the price and RSI indicator on the daily timeframe which could lead to volatility in upcoming days.
Static Levels For Ethereum
There are three critical static levels for Ethereum on its daily chart; they are:
- The $1.7K major resistance level
- The $1.3K minor support level
- The $1K major support level.
The price has been ranging between these two points for several months and it is likely that if rejected from its current position, Ethereum will next stop at its minor support level of $1.3k before continuing with its trend or entering a new one altogether depending on market conditions..
Ascending Head & Shoulder Pattern On 4 Hour Chart
Ethereum’s price action seems to be bearish on its 4 hour timeframe as it has been forming an ascending Head & Shoulder pattern after reaching an important resistance region that may lead to further downward movements below its neckline at around 1$.5k if confirmed by market actions .
Conclusion
It can be concluded that despite being in an overall bullish trend, Ethereum faces some headwinds in terms of possible corrections in both short term and long term due to various factors such as bearish divergences between prices and RSI indicators , formation of certain patterns ,and certain key static levels that act as strong resistances or supports depending on their values . Therefore potential investors should keep themselves aware of any changes happening within these parameters before taking any decisions related to investments .