Ethereum rejected a key resistance earlier today but the price is still up 3% following a steady increase since the start of this week. However, it looks bullish but the price remained trapped in a tight range.
This month started a bit rough for Ethereum following a sudden collapse that hit the market last week. It saw about 15% loss during that period. It recovered and consolidated above the $2,200 level throughout that week.
On Monday, the price plunged through that level but sharply recovered with a surge above the $2,300 level. It closed strong yesterday and further pushed to test a key resistance level of $2,403 level few hours ago. It faced rejection there and retraced briefly.
Meanwhile, the price has been stuck between the range of $2,100 and $2,400 for over a month, with several failed attempts to break away from this tight range. Despite that, the second-largest crypto by market cap remains bullish on the weekly scale.
Considering this tight trading range as an accumulation phase for a long-term rally, we can expect a massive price movement as soon as the price breaks up.
But if this trading range turns out to be a distribution phase in the future, Ethereum will most likely break down towards the $1,800 and $1,700 range for a broader correction. Right now, the market looks dicey and it will be too early to start considering a trend reversal.
ETH’s Key Level To Watch
If ETH manages to overcome today’s rejected $2,402 resistance along with last month’s $2,445 high successfully, the $2,500 level may come as the next resistance before testing $2,700 and maybe $3,000.
For a pullback, $2,330 and $2,257 are levels to keep in mind as close support. Should a dip occur, the price could fall back to $2,179 and $2,116 – where it bounced back last week.
Key Resistance Levels: $2,403, $2,445, $2,500
Key Support Levels: $2,330, $2,257, $2,179
- Spot Price: $2,376
- Trend: Neutral-Bullish
- 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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