Ethereum Price Analysis: Here’s First Support in Case of Correction
• Ethereum has reached the major resistance level of $1.7K, but is now consolidating beneath it.
• There is a bearish divergence between the price and RSI indicator on the daily timeframe that could lead to volatility in the upcoming days.
• There are three critical static levels for Ethereum: $1.7K major resistance, $1.3K minor support, and $1K major support.
Analysis of Ethereum’s Uptrend
Ethereum has surpassed the 200-day moving average and the multi-month channel’s upper trendline due to its recent bullish move of the whole market. However, the price declined from its major resistance level of $1.7K and is now consolidating beneath it. Additionally, there is a substantial bearish divergence between the price and RSI indicator on the daily timeframe which could lead to volatility in coming days.
Static Levels For Ethereum
The static levels for Ethereum on the daily chart include: a major resistance at $1.7K; a minor support at $1.3K; and a major support at $1K – all ranging between these two points for several months now.
4 Hour Chart Analysis
On 4 hour time frame, Ethereum’s price action appears bearish as it forms an ascending Head and Shoulder pattern (also known as three drives pattern), after reaching its vital resistance region. If crypto cascades below its neckline (roughly at$ 1.5K) then this might be indicative of a reversal pattern, signaling further downtrend movements ahead in near future..
Support In Case Of Short Term Correction
In case of short term correction or rejection from $ 1 . 7 K , then next stop for Ethereum could likely be around its minor support level at $ 1 . 3 K . This would provide first level of much needed support during any sort of downside movements in near future .
Conclusion
To sum up , there is potential for further downside movements ahead with each static levels providing required supports against heavy losses on either side . It’s important to keep an eye out on technicals here , so traders can plan their entries accordingly depending upon how market moves ahead over coming days .
