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The Ethereum price surged over 14% in the past week to trade at $3,376.06 at press time
The Ethereum Price Attempts To Flip Resistance
4-hour chart for ETH/USDT (Source: TradingView)
The Ethereum price is striving to consolidate above the $3,415 resistance level. While it breached this barrier in yesterday’s trading session, it failed to close the daily candle above it. Over the past fortnight, the leading altcoin has shown a pattern of higher highs and higher lows, forming a bullish medium-term price channel.
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If Ethereum encounters resistance again at the $3,415 mark today, it could potentially retrace to the immediate support at $3,140 within the next 24 hours. Despite a drop to this level, a bullish scenario remains plausible as long as Ethereum stays within its medium-term ascending channel. A bounce from this support could prompt another attempt to breach the $3,415 threshold. Should traders hold their positions without taking profit, Ethereum could aim for the subsequent resistance at $3,700 within the next 48 hours.
However, this bullish outlook may be invalidated if Ethereum dips below $3,140 in the next two days, potentially leading to a correction down to around $2,890 in the short term.
Buyers Might Drive ETH’s Price Upwards Soon
While technical indicators on Ethereum’s 4-hour chart present mixed signals, they lean towards a bearish outlook for the near future. The Moving Average Convergence Divergence (MACD) line recently crossed below the MACD Signal line, typically signaling a bearish cycle and a potential further decline in price.
Conversely, the Relative Strength Index (RSI) indicates a budding strength in bulls. Although the RSI line is currently positioned bearishly below its Simple Moving Average (SMA) line, implying seller dominance, its positive slope suggests an emerging comeback from buyers. Bullish investors may perceive the current Ethereum price as a buying opportunity, thus re-entering the altcoin’s market.
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Before committing to long positions on Ethereum, traders may prefer to wait for confirmation of a bullish phase. This confirmation could manifest in various ways: the MACD Histogram gradient turning positive, the RSI crossing above the SMA line on the 4-hour chart, a 4-hour candle closing above the $3,415 resistance level, or a rebound from the lower boundary of the aforementioned price channel, which could present a potential long entry point for traders with a higher risk tolerance.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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