About a week ago, Ethereum (ETH) saw a strong upward move, pushing the price up with notable momentum. Since then, it has entered a period of consolidation, trading within a tight range as the market awaits the next decisive move.
-------------------------------
Which Direction Will ETH Break?
After such a strong rally, this kind of consolidation is normal. It could signal a continuation to the upside, especially if this is part of a broader relief rally. However, it's important to note that during the rapid move up, ETH left behind a 4h Fair Value Gap (FVG), which may attract price back down for a potential fill in the event of a breakdown.
-------------------------------
Stochastic RSI insight
On the daily chart, the Stochastic RSI remains in the overbought zone. Historically, when this indicator lingers in such territory, ETH has seen notable pullbacks. This could be an early sign that a downward move is more likely unless momentum changes soon.
-------------------------------
ETH vs. the 50-Day Moving Average
ETH is currently struggling with the 50-day Moving Average (MA), trading just below this key resistance level. As long as ETH remains under the 50-day MA, bearish pressure could continue. However, a reclaim and sustained hold above this level would likely indicate a shift toward bullish momentum.
-------------------------------
My Outlook
This range is tricky to trade, and a breakout in either direction is possible. Personally, I think there's a chance ETH could sweep the recent highs before a larger move down. The overbought Stochastic RSI and resistance at the 50-day MA both suggest that the rally might be losing steam in the short term.
-------------------------------
Thanks for your support.
- Make sure to follow me so you don't miss out on the next analysis!
- Drop a like and leave a comment!
-------------------------------
Which Direction Will ETH Break?
After such a strong rally, this kind of consolidation is normal. It could signal a continuation to the upside, especially if this is part of a broader relief rally. However, it's important to note that during the rapid move up, ETH left behind a 4h Fair Value Gap (FVG), which may attract price back down for a potential fill in the event of a breakdown.
-------------------------------
Stochastic RSI insight
On the daily chart, the Stochastic RSI remains in the overbought zone. Historically, when this indicator lingers in such territory, ETH has seen notable pullbacks. This could be an early sign that a downward move is more likely unless momentum changes soon.
-------------------------------
ETH vs. the 50-Day Moving Average
ETH is currently struggling with the 50-day Moving Average (MA), trading just below this key resistance level. As long as ETH remains under the 50-day MA, bearish pressure could continue. However, a reclaim and sustained hold above this level would likely indicate a shift toward bullish momentum.
-------------------------------
My Outlook
This range is tricky to trade, and a breakout in either direction is possible. Personally, I think there's a chance ETH could sweep the recent highs before a larger move down. The overbought Stochastic RSI and resistance at the 50-day MA both suggest that the rally might be losing steam in the short term.
-------------------------------
Thanks for your support.
- Make sure to follow me so you don't miss out on the next analysis!
- Drop a like and leave a comment!
Free discord trading community
discord.gg/ctYsFQR4bx
Free signals
t.me/codeandcandle
discord.gg/ctYsFQR4bx
Free signals
t.me/codeandcandle
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.
Free discord trading community
discord.gg/ctYsFQR4bx
Free signals
t.me/codeandcandle
discord.gg/ctYsFQR4bx
Free signals
t.me/codeandcandle
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.