Ethereum’s recent price action has found support near the important 100-day moving average, indicating a change in market sentiment from bearish to bullish. ETH has embarked on a bullish retracement and has now reached a crucial resistance area, setting the stage for the next move.
Written by Shayan
A comprehensive look at Ethereum’s daily chart reveals a shift in market sentiment, with the key 100-day moving average at $2,225 providing strong support. At the same time, Ethereum experienced a rebound, pushing the price towards a key resistance area. This area includes the lower bound of an expanding wedge pattern and a static $2.6,000 price range.
If ETH crosses this critical resistance level, it could herald a new phase of bullish movement and lead to increased market volatility. Therefore, Ethereum price movements around this important range are of paramount importance in determining the future trend of the cryptocurrency.
4 hour chart
Analysis of the 4-hour chart reveals that after an impulsive cascade, Ethereum faced significant buying pressure, causing a reversal. This surge in buying activity pushed the price higher and caused a retracement towards the uptrend line to reclaim it.
Currently, the price is encountering an important resistance area marked by the $2450 static zone and the uptrend line.
This determined resistance has thwarted recent attempts by buyers to break through and established itself as a formidable barrier.
Nevertheless, future price action around this critical resistance level is likely to determine the next direction for Ethereum, with increased market activity expected in the short term. Continuously monitoring these key levels is essential to evaluating ETH’s potential trajectory.
Written by Shayan
The chart depicted shows the Ethereum exchange’s net flow indicator and its price, representing the difference between coins entering and exiting the exchange. In particular, a positive value indicates an increase in foreign exchange reserves, indicating an increase in potential selling pressure. On the other hand, negative values indicate a decline in foreign exchange reserves, suggesting continued accumulation.
An insightful observation from the chart is that each sustained uptrend coincides with the indicator trending down in negative territory.
Now, after a period of consolidation, this indicator is showing a decline, indicating a possible accumulation in the market. If this trend continues, Ethereum is expected to rise again in the medium term.
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Cryptocurrency charts by TradingView.