Published 1 hour ago
Ethereum price analysis suggests a consolidation near the higher level. The price is oscillating above $1,700 while maintaining a bullish bias. However, the bears are trying to pull the token lower as the price moves in a very narrow trade range.
Despite, a luke warm trading session the Ethereum price moves inside the rising channel. This is a bullish pattern, which indicates the price would continue to move higher in the short-term. The immediate upside target could be $1,800 if the buying is sustained inside the formation.
- Ethereum price extends consolidation on the weekend wiht modest losses.
- The price retraced from the strong resistance zone that extends from $1,770 to $1,750 level.
- The bearish RSI waners of aggressive bids if price stays below $1,680.
Ethereum price extends consolidation
The Ethereum price formed a ‘rising wedge’ pattern on a daily basis, making higher highs and higher lows, indicating positive strength.
However, the formation of double top near $1,750 level challenges the bull. After testing the swing highs of $1,782.61 on July 27, the price entered a pullback to test $1,556.96.
The retracement is preceded by an impulse move from the lows made on July 12 at $1,003.87. This, also coincides with the 50% Fibonacci retracement, which is an excellent tool for calculating the scope of a retracement.
In the previous session, the formation of a green candlestick indicates the presence of buyers near the lower levels. Following a week of downside momentum. However, there is a strong resistance barricade placed around $1,750 level. If the price is able to break the resistance level amid sustained buying pressure then we can expect a good bullish momentum of up to $1,855.
The RSI (14) is trading above 50, indicating that the average gain is larger than the average loss. Any uptick in the indicator would strengthen the bullish argument.
However, the bearish divergence means the price could retrace towards the 0.78% Fibo. level towards $1,617.
On the four-hour time frame, the Ethereum price formed a “Double Top pattern”, making it difficult for the buyer to hold their buying positions for too long. If the price has not been able to break the resistance soon, then we can expect a good fall of up to $1,580.
However, the price recovered from the lows of $1,685.89, further if the bulls manage to hold the $1,700 mark on the hourly basis. It would mean it is a healthy correction and the price is making a strong base to initiate further leg-up. In that case, the Ethereum price would touch the $1,750 followed by the $1,800 psychological level.
The presented content may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.