- Ethereum price analysis is sluggish as volumes have dropped
- The nearest resistance rests at $4,400, while the nearest support is $4290
- Chart patterns are contradictory for Ethereum as bulls HODL
Ethereum price analysis is sluggish for today due to a lack of volumes. The data from CoinMarketCap shows that the trading volume of the Ethereum token has dropped by nearly 22.09% and currently rests at $19.7 billion.
On the other hand, the prices for Wednesday opened at $4306, reaching a daily high of $4442 after reaching a daily low of $4222, giving a 2% rise to traders. ETH has made a quick recovery from the massive sell-off that the market experienced last Saturday.
Meanwhile, the nearest resistance for the second-biggest cryptocurrency rests at $4,400, just a 9.65% low from its all-time high experienced nearly a month ago. Comparatively, Bitcoin is low by more than 25% from its ATH. As a result, investors feel that ETH will outperform BTC in the near future.
Ethereum price analysis on the daily chart using patterns
Ethereum price analysis on the charts below shows that the market movement is confusing for investors. The first chart depicts the formation of a bearish chart pattern by the name of ‘descending triangle.’ Ethereum is forming a series of lower highs followed by a series of lower lows, and if volumes rise, a bearish breakout can be witnessed.
The chart below shows that the setup called a ‘bullish flag’ is confirmed for Ethereum. As per our analysis, the prices rose since October, forming the ‘flagpole,’ and after a bearish retracement, the actual flag was formed. As a result, the price target can be seen above $6,500.
Ethereum price analysis using Indicators
The MACD indicator in the chart below shows that the MACD line (blue) is crossing above the signal line (orange), which means that the prices might turn bullish, aiming to breach the previous ATH. Furthermore, the MACD histogram might also turn bullish.
The RSI indicator shows that the token has entered the bullish region, i.e., above 50-level. A continuation of this trend might mean higher prices. Currently, the gradient is sharply positive, indicating a surge in selling pressure.
The Ethereum price analysis can be concluded on a sluggish note for today although, indicators are bullish. As per a tweet from Lex Moskovski, CIO of Moskovski Capital, Ethereum on exchanges has set a new record. This means that the bulls are holding their tokens, awaiting higher prices.
For a long-term analysis, you can visit our Ethereum Price Prediction.