Here’s Why Ethereum Coin Price Is At Risk Of 10% Correction?

Following a massive bullish rally, the Ethereum coin price has shown several higher price rejection candles near the $1600 mark in the last few days. This rejection hints at the exhausted bullish momentum, which could encourage a minor pullback in the near term. Here’s what you can expect if Ethereum starts falling in the coming weeks.

Key Points: 

• A potential correction could tumble the ETH price by 5-10%
• The rounding bottom pattern may eventually lead the ETH price to $1660
• The intraday trading volume in Ether is $7.4 Billion, indicating a 5.5% loss

Source- Tradingview

Under the influence of a rounding bottom pattern and the ongoing recovery in the crypto market, the Ethereum price witnessed a parabolic rally within the last three weeks. This bull run surged the ETH price 35.6% since January 1st, where it currently trades at $1597.

Furthermore, the increasing volume activity and breakout from multiple resistance levels indicate a high momentum recovery. The last resistance the Ethereum price breached was the $1500 psychological level, offering buyers suitable support to boost further growth.

However, while the altcoin hovers above the breached resistances, the daily candle shows multiple higher price rejections suggesting the exhausted bullish momentum. These rejection signs hint the altcoin could witness a minor correction before resuming the prevailing uptrend. 

Also Read: Top 10 DeFi Lending Platforms In 2023

Anyhow, this potential correction will be healthy for the Ethereum coin as it experienced a sharp rally in a relatively short period. Moreover, a minor correction to retest the breached levels will determine whether the ETH price can sustain higher levels.

A potential pullback could revisit the $1500 or $1420 support to replenish the bullish momentum.

Having said that, in response to the rounding bottom pattern, the  Ethereum coin price is expected to drive a sustained rally to the $1660 neckline.

Technical Indicator

MACD: The MACD and signal line maintain a significant gap between them, indicating the sustaining buying pressure in the market.

EMAs: the recently breached 200-day EMA wavering around the $1500 mark increase the support strength on this level. Moreover, the 20-day EMA at $1400 does the same job.

Ethereum Coin Price Intraday Levels-

• Spot rate: $1598
• Trend: Bullish 
• Volatility: Medium
• Resistance level- $1660  and $1800
• Support level- $1500 and $1420