TL;DR Breakdown
- Ethereum price expected to retest $1,400 resistance level.
- The closest support level lies at $1,200.
- ETH faces resistance in crossing above the $1,300 mark.
Ethereum price failed to climb above the $1,400 mark, and the price declined below the $1,200 level. ETH found support at the $1,050 mark and has recovered to the $1,200 level. However, the bearish pressure still persists as the price action observes wave-like activity.
The broader cryptocurrency market observes bullish sentiment across the last 24 hours as most cryptocurrencies recover from yesterday’s losses. Bitcoin has climbed back above the $32,500 price level, while Polkadot observes a 9.51 percent increase across the period.
Ethereum price overview: Ethereum price across January
Ethereum turned the year with little volatility as the traders continued speculating. However, the price quickly found bullish support and started rising. The bull rally carried the price from the $750 price level to the $1,350 before meeting strong resistance.
The resistance caused the price to observe a correction back to the $1,000 level before stabilizing. Since then, the price has made another attempt at crossing above the $1,400 level but failed again. Yesterday, the price fell to the $1,050 mark, but ETH has now made a recovery to the $1,200 level heading further upwards.
Technical indicators
Across the technical indicators, the MACD is bearish but shows decreasing bearish momentum. The indicator suggests a bullish reversal as the price recovers above the $1,200 mark. The two EMAs are converging sharply, suggesting a reversal in the next few hours.
The RSI is neutral and hovers close to the mean position at 50.00, suggesting room for movement in either direction. The indicator’s incline suggests an increasing bullish pressure in the markets. Currently the indicator is trading at 46.70.
The Bollinger bands are expanding further, suggesting increasing price volatility for Ethereum. The bands are expanding with a slight decline suggesting bearish pressure at the price level.
The four-hour technical analysis issues a slight sell signal as nine of the 28 major technical indicators support a bearish trend. On the other hand, seven indicators are issuing buy signals while another 10 remain neutral, not leaning towards either side.
The 24-hour technical analysis contradicts this sentiment as the analysis issues a buy signal with 12 indicators supporting a bullish trend. Meanwhile, 10 indicators remain neutral while four issue sell signals. As such, while the analysis issues a buy signal, the signal is not very strong.
What to expect from Ethereum price?
Traders should expect Ethereum price to continue rising as ETH recovers to retest the $1,400 resistance level. Although the indicators show mixed market sentiment, the high trade volume is a positive factor suggesting strong momentum behind the recent recovery. Similarly, the $1,200 price level is strong support for the price.
Conversely, if Ethereum price falls below the $1,200 level, ETH may revisit the $1,050 support level. Further downwards movement may suggest a decline to the strong support at the $1,000 level.
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.
