- Ethereum price currently at $597.19
- Price shows bullish reversal across the short-term charts but weekly chart remains bearish
- Price expected to decline further as bears persist.
Yesterday, Ethereum (ETH) price broke below the $600 level as ETH saw sharp bearish activity, causing it to fall below the $560 level. While the price has recovered since then, bearish pressure still haunts the price action and ETH trades below the $600 level.
The broader cryptocurrency market observes confusion as most top 10 cryptocurrencies observe bearish movement while many smaller assets are bullish across the last 24 hours. Meanwhile, Bitcoin price consolidates near the $23,400 level with little movement towards either side.
Ethereum price across the last ten days
Across the four-hour frames, we can observe that Ethereum price opened November 15 with bullish momentum that vaporized early in the day. The price continued to consolidate above the $580 mark as markets observed little momentum towards either side.
On November 16, the price broke above the $600 level with sharp bullish activity carrying the price above the $620 level. ETH closed the day at $636.61, showing a 7.6 percent increase from the day’s opening price. The bullish momentum continued the next day s the price rose above the $660 mark.
However, the rise was brief as the bearish pressure halted the bullish movement. Ethereum price action retraced to the $640 level before recovering to challenge the level once again as the bulls were not fully exhausted yet. The price once again crosses above the $660 level only to fail closing above the level.
Subsequently, the trend was rejected, and the Ethereum price entered a bearish trend. The price retraced to the $600 level before finding a foothold to enable the bulls to fight back. However, the increasing bearish pressure caused the price to fall below the level. The price declined below the $560 level before bouncing back. Currently, the price is trading above the $590 level moving towards the $60 level.
Across the technical indicators, MACD shows declining bearish momentum as the two EMAs show convergence. Meanwhile, the RSI is rising towards the 50.00 level, suggesting potential in both upwards and downwards movement. Similarly, the Bollinger Bands are currently wide and do not show signs of contracting, suggesting that price may see high volatility in the short-term.
Price should be expected to observe sideways movement near the $600 mark before breaking below.
Ethereum price across the 1-week frames
Across the weekly frames, we can observe that Ethereum price has spent 2020 trading inside an ascending channel that started on December 23, 2019. The ascending channel has guided the price from lows of $135 in early January to recent highs of $660.
The recent retracement reinforces the trend as further upwards movement would have broken above the channel. Ethereum price currently shows potential for further downwards movement.
Across the technical indicators, the MACD shows declining bullish momentum as the two EMAs converge. Similarly, the RSI is above the 70.00 level suggesting further correction before price stabilizes.
Traders should expect Ethereum to retrace further falling towards the $500 level before the price can continue with its long-term bullish rally.
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