• Ethereum (ETH) has been trading in a tight range for an extended period of time, leaving the market uncertain.
• Technical analysis indicates that ETH is up against the 100-day moving average, which is a strong support level at $1781.
• A breakout from this range could finally hint at the next move’s direction.
Overview
Ethereum has been trading in a tight range for an extended period of time, leaving the market uncertain and full of bearish sentiment. However, technical analysis indicates that a breakout from this range might finally hint at the next move’s direction.
Daily Chart Analysis
The price faced resistance at the $2K level and subsequently dropped below a short-term upward trendline. It is now undergoing a pullback to test this same trendline. Meanwhile, ETH is up against the 100-day moving average, which represents a strong support level positioned at $1781. A significant increase in selling pressure would be necessary in order to push the price below this vital price point. Presently, ETH is confined within a tight range roughly between the 100-day moving average at $1781 and the ascending trendline around $1890.
4-Hour Chart Analysis
Zooming in on the 4-hour chart reveals small candles indicating a lack of clear direction during this consolidation phase. During this phase, Ethereum briefly touched the upper boundary of the descending wedge pattern but was rejected back down again. On this timeframe three important price zones come into play:the lower threshold of the multi-month ascending channel (indicated by purple lines),the significant level of $1.8K and lastly an ascending trendline around $1.89K
Conclusion
Ethereum has remained stagnant for an extended period of time and it remains unclear if it will break out or stay contained within its current range as bearish sentiment lingers over traders’ heads.. However, with all indicators pointing towards a possible breakout soon; traders must keep their eyes open as we may see Ethereum make some big moves shortly!
Key Takeaways
• Ethereum has been trading in sideways movement for an extended period of time, leaving traders uncertain about future trends • Technical analysis suggests that ETH is currently up against its 100-day moving average support level at $1781 • A breakout from its current ranging pattern could indicate where ETH will go next
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