In the 4-hour chart, Ethereum's price is moving within a converging pattern, with the recent bounce off a key ascending trendline support around $2,373. This area has served as a significant support level previously, preventing further declines. Currently, ETH is trading near $2,501 and faces immediate resistance from the 20, 50, and 100 EMAs (Exponential Moving Averages), particularly around $2,550.
Key Observations:
Conclusion:
Ethereum is at a critical juncture between ascending support and overhead resistance. If bulls manage to push the price above $2,661, it may open doors to test $2,750 or even higher. However, failure to hold the $2,373 support could result in further downside toward $2,200. Traders should watch volume and RSI for confirmation signals.
Key Observations:
- Ascending Trendline Support: The trendline has consistently held Ethereum’s price, indicating strong buying interest near this level. A break below could lead to further downside toward the next support zone around $2,200.
- Resistance Zones: ETH faces notable resistance between $2,661 and $2,750, marked by a horizontal red zone. This area aligns with previous swing highs and the 200 EMA, making it a key level to watch for potential upside.
- RSI Divergence: The RSI (Relative Strength Index) shows a bullish divergence, suggesting that selling momentum is weakening. This could indicate a possible reversal if price action aligns with a breakout from immediate resistance.
- Volume Analysis: Volume levels have been relatively stable, but any increase in buying volume near current levels could strengthen the potential for a breakout toward the resistance levels.
Conclusion:
Ethereum is at a critical juncture between ascending support and overhead resistance. If bulls manage to push the price above $2,661, it may open doors to test $2,750 or even higher. However, failure to hold the $2,373 support could result in further downside toward $2,200. Traders should watch volume and RSI for confirmation signals.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.