TL;DR Breakdown
- Ethereum price expected to rise to $2,200.
- ETH faces resistance in crossing above the $2,000 mark.
- The closest support level lies at $1,900 and further below at $1,850.
Ethereum price rose to challenge the $2,000 psychological price level yesterday. However, the queen of the cryptocurrency market failed to breach the level and was rejected instead. The rejection caused the price to drop to the $1,800 level before stabilizing.
Since then, Ethereum price has recovered to the $1,950 level where it currently trades.
The broader cryptocurrency market enjoys a bullish sentiment across the last seven days, with multiple cryptocurrencies recording triple-digit profits. Similarly, major cryptocurrencies such as Bitcoin and Polkadot also recorded profits of 18.05 and 46.50 percent, respectively. Some currencies like Bitcoin Cash, Ripple XRP, and Dogecoin reported a net loss across the timeframe.
Technical indicators
Across the technical indicators, the MACD shows increasing bearish momentum as the price continues to descend below the $1,970 price level. Both EMAs are declining, with the 12-EMA maintaining its difference from the 26-EMA. If Ethereum price holds above the $1,940 support level, the indicator would suggest a bullish reversal with the EMAs rising once again.
Since the rejection, the RSI has returned to the neutral zone and trades close to the 50.00 mark. Currently, the indicator is above 54.50 but is declining to suggest bearish pressure at the price level. While the indicator’s neutral position suggests the potential for sharp movement on either side, the RSI does not issue any signal.
The Bollinger bands are currently narrow and show further convergence as the price oscillates around the indicator’s mean line. Until yesterday, the indicator was expanding upwards, showing a bullish dominance in the markets. However, since the rejection at the $2,000 mark, the indicator has converged to a squeeze as the price oscillates around the $1,950 mark.
Overall, the four-hour technical analysis issues a buy signal of reasonable strength as 14 of the 26 major technical indicators support a bullish price action across the timeframe. On the other hand, only three indicators suggest a bearish retracement, while the remaining nine indicators remain neutral and do not issue signals suggesting support for either side.
The 24-hour technical analysis shares this sentiment with 14 indicators supporting an upwards movement against two, suggesting a downwards price movement. Meanwhile, 10 indicators are sitting on the fence and do not support either side.
What to expect from Ethereum price?
Traders should expect Ethereum price to consolidate at the current price level for a while before making a bullish breakout. The supportive technical indicators and the high trade volume suggest a breakout to the $2,200 price level.
However, ETH may fall to the $1,800 level before recovering to challenge to the $2,000 mark.
Conversely, if Ethereum price falls below the $1,800 mark, ETH may revisit the $1.700 support level, with potential downwards movement to the $1,650 support. Further downwards movement is unlikely given the bullish sentiment dominating the cryptocurrency market at the moment.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
