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The Ethereum (ETH) price recovery has stalled at $1730 resistance and formed a minor consolidation with $1600 support. In addition, a bearish divergence in momentum indicator(RSI) indicates the bears are wresting control from buyers, which may encourage the $1600 support breakdown. Thus, should you keep holding those Ethers?
- The ETH price aims for another 10% jump under the influence of the rounding bottom pattern
- The daily candlestick closing below $1600 would invalidate the bullish thesis
- The intraday trading volume in Ethereum is $10.74 Billion, indicating a 24.5% loss
The $1000 psychological support cushioned the prior downtrend and reverted the ETH/USDT pair to a rounding bottom pattern. In response to this bullish reversal pattern, the altcoin has rallied 67.8% within a month and hit the $1730 supply zone.
Today, the ETH price currently trades at the $1700 mark and is nearing the $1730 breakout. If the buying pressure sustains, this will be a second retest to the overhead resistance within a fortnight.
A bullish breakout from this resistance would signal the continuation of the prevailing recovery. The resulting rally should drive the ETH price 10% higher to the $1900 mark.
However, the long-rejection candles observed at this resistance last weekend and the presence of 100-day EMA at the same level form a formidable barrier. Therefore, the buyers need strong bullish momentum to surpass this $1730 mark.
Thus, if buyers failed to do so, a possible reversal and breakdown below the 20-day EMA would signal a significant correction in Ethereum (ETH) price.
RSI: The daily RSI slope dropped lower concerning the last swing high in price action. Thus, this bearish divergence indicates weakness in buyers’ commitment and bolsters the correction theory.
EMAs: the ETH price wobbling between the 20-and-100-day EMA creates a narrow range. A breakout from either of these EMAs will give a better confirmation for respective rallies.
- Resistance level- $1730, and $1900
- Support levels- $1600 and $1400
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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.