Amid market calmness, Ethereum continued to recover but it is likely to face a key resistance soon. Failure to push above this resistance may lead to another drawdown. Its bullish trajectory remains intact from a short-term perspective.
Ethereum has shown no sign of correcting lower with the latest price action on the daily chart. Since the price bounced off the $2,160 level two weeks ago, it has been showing signs of strength, although not strong yet.
Things may change in the future but there’s still room for an increase up to the key $2,500 level before ETH finally decides on the next major direction, which looks dicey on the current daily chart.
Taking a close look at the price actions over the past two months, it has established base support above the $2,100 level with a double-bottom formation. It is still building up and is yet to initiate a surge in volatility.
Should Ethereum find it difficult to push above the mentioned key level in the latest build-up, it may roll back to the base support before initiating another move. That may result in a head and shoulder pattern, which is capable of collapsing the price.
But as it appears now, the bulls are in charge with 5% gains in the past week.
ETH’s Key Level To Watch
As Ethereum charges for gains, it may encounter resistance at the $2,445 level. Rallying through this resistance could bring the price to the $2,566 level. The resistance level to watch for a breakout lies at $2,717.
A drop from the current trading level could slip the price to nearby support of $2,222, followed by $2,142. A further dip could plunge the price to the key level of $2,000 before cracking lower.
Key Resistance Levels: $2,445, $2,566, $2,717
Key Support Levels: $2,222, $2,142, $2,000
- Spot Price: $2,336
- Trend: Bullish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.