Today’s Ethereum price analysis shows ETH has corrected lower after hitting a roadblock at $1,600.Ethereum is trading at $1,522.05 and is trading in a sideways range between $1,500 and $1,600.
The short-term trend is bearish as the price has failed to break through the resistance at $1,600 twice in a row now. The rejection from this level was followed by a selloff of 5 percent. Ethereum bulls will have to push prices above the psychological level of $1,600 for a potential trend reversal.
On the downside, Ethereum is supported by $1,500 and a 50-day moving average (MA). The 50-day MA is currently at $1,500 which might act as an important support level in case of a further selloff. ETH price needs to stay above this support level to prevent any further correction in the near term.
Ethereum price action on a daily chart: ETH consolidates below $1,600
On the daily chart, the Ethereum price analysis shows a bearish trend as it is trading below the $1,600 level. The MACD is in a bearish zone and is slowly gaining momentum. The RSI has also been in the oversold region for some time now which suggests that there may be further downward pressure in the near future.
The trading volume has declined by over 38% and is currently at $5,236,942,593.Buying and selling activity has been relatively increasing as bears and bulls are having a tug of war at the $1,600 resistance level.
The Bollinger bands are widening which suggests that volatility is increasing in the market. The current market sentiment is bearish and the Ethereum price needs to break through the $1,600 resistance level for a potential trend reversal.
The next crucial resistance levels, in case of a break above $1,600 are at $1,650 and $1,700. A break below the 50-day MA could lead to further downside action. Support levels can be identified at $1,500 and $1,400 in case of a breakdown.
Ethereum price analysis on a 4-hour chart: Bullish crossover of the moving averages
On the 4-hour chart Ethereum price analysis reveals there is a bullish crossover of the 50 MA and 200 MA which suggests that buyers have taken control. Meanwhile, the Exponential Moving Average (EMA) has also crossed above the 50 MA which is a bullish sign.
The MACD is in the bullish zone and has generated a buy signal as it is trading above zero line. The relative strength index (RSI) is currently at 36 which suggests that ETH prices are approaching the oversold region.The Stochastic RSI has also crossed above the 50 level which suggests that buyers may have an upper hand in the near future.
Ethereum price analysis conclusion
Overall, Ethereum price analysis shows that ETH is facing stiff resistance at $1,600 and needs to break through this level for a potential trend reversal. The bullish crossover of the moving averages and other technical indicators suggests that there is buying pressure in the market. However, a break below the 50-day MA could lead to further downside action.
