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.
- 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.
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.
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