Ethereum made a mid-week reversal following the current correction in the overall market. This correction came with a sharp nosedive near the $1.9k level and has remained calm around there ever since.
The past two weeks have been so volatile for Ethereum as it broke out of a four-month channel to mark a year high at $2,141. It temporarily paused the rally and consolidated around that area for days.
On Wednesday, ETH took a sudden downturn and cut almost $200 from its opening price. Yesterday’s volatility was not that much as trading remained calm above the $1,900 level ever since.
Meanwhile, the $2k crucial level that is supposed to provide support is now serving as resistance. That crucial level might turn out tough for bulls to reclaim when they step back. However, it has found temporal support on the channel’s upper boundary, which looks like a retest of last week’s breakout. It is also facing support at the current trading level.
A bounce above this channel could sprout another big rally towards the $2.4k price zone in the coming month. Should the price rolls back inside the channel, it may navigate the channel’s lower boundary for support.
Regardless of the current market condition, ETH remains bullish on the higher time frame. The price must drop below March’s low before we can start to consider a bearish reversal from a mid-term perspective.
ETH’s Key Level To Watch
As Ethereum trades at a critical area, the $2,030 resistance level should be considered for a possible rebound. If that level flips again, the next rally targets would be $2,160, $2,300, and beyond.
If the asset resumes selling, the immediate support level to watch is $1,883, followed by the hidden $1,800 psychological level and $1,788.4. Dropping further, the support levels to pay attention to on the way are $1,722.9 and $1,678.9, right inside the channel.
Key Resistance Levels: $2,030, $2,160, $2,300
Key Support Levels: $1,883, $1,788.4, $1,722.9
- Spot Price: $1,938
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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