ETH Needs to Break This Level to Initiate a Sustained Rally (Ethereum Price Analysis)

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Ethereum increased by 25% in the past few days and seems to be a step away from shat­ter­ing the line that has fol­lowed the price since its all-time high was reg­is­tered in Novem­ber 2021.

Technical Analysis

By Griz­zly

The Daily Chart

Ethereum has reached an obsta­cle on the dai­ly chart. A sig­nif­i­cant resis­tance zone has been estab­lished by the con­ver­gence of two descend­ing lines (in yel­low and orange) and the hor­i­zon­tal resis­tance at $1,800 (in red).

On August 14, the bulls’ final effort to break out was unsuc­cess­ful. Since then, the price moved into a weak­er posi­tion, reach­ing $1,420. The recent increase has now pre­sent­ed the bulls with an oppor­tu­ni­ty to retest the resis­tance zone.

In the days lead­ing up to the Merge, the mar­ket is dom­i­nat­ed by bull­ish sen­ti­ment, and this will be ampli­fied if the bulls can reclaim $2K.  Alter­nate­ly, fail­ure to break this lev­el will end expec­ta­tions of a ral­ly. If this occurs, the first area of sol­id sup­port lies around $1,400.

In con­clu­sion, it is cru­cial to observe the dai­ly struc­ture dur­ing the next cou­ple of days. The strength of the upper wicks, which shows how deter­mined the bears are to defend the resis­tance zone, is also impor­tant to monitor.

Key Sup­port Lev­els: $1650 & $1420
Key Resis­tance Lev­els: $1800 & $2100

Dai­ly Mov­ing Aver­ages:
MA20: $1581
MA50: $1660
MA100: $1490
MA200: $2101

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Source: Trad­ingView

The ETH/BTC Chart

On the ETH/BTC chart, the ascend­ing line (in orange) is now act­ing as resis­tance. Addi­tion­al­ly, for the third time in 50 days, the 14-day Rel­a­tive Strength Index (RSI) has encoun­tered resis­tance at the descend­ing line (in white) after reach­ing above 70 again. This is con­sid­ered an over­bought zone, and because of the neg­a­tive diver­gence (in red), it appears the trend is steadi­ly becom­ing weaker.

A trend rever­sal can be ini­ti­at­ed with a break and close below 0.08 BTC. The next sup­port in this sit­u­a­tion will like­ly be found at 0.073 BTC.

Key Sup­port Lev­els: 0.0.0.08 & 0.073 BTC
Key Resis­tance Lev­els: 0.088 & 0.093 BTC

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Source: Trad­ingView

 

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Dis­claimer: Infor­ma­tion found on Cryp­toPota­to is those of writ­ers quot­ed. It does not rep­re­sent the opin­ions of Cryp­toPota­to on whether to buy, sell, or hold any invest­ments. You are advised to con­duct your own research before mak­ing any invest­ment deci­sions. Use pro­vid­ed infor­ma­tion at your own risk. See Dis­claimer for more information.

Cryp­tocur­ren­cy charts by TradingView. 



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