Ethereum maintained a bullish daily since it bounced off a key support level over the past days. However, buying has slowed due to multiple rejections at the monthly resistance.
The overall market structure currently appeared bullish from a long-term perspective, but Ethereum has been finding it difficult to conquer the key $3,525 resistance level (the monthly high) since last week.
It has failed to break higher due to multiple rejections. Buying pressure has subsided for the past few days and the price is now on the verge of losing grip following a 3% daily loss. It is now trading at $3,490.
Now that the bears are showing interest again, the market may witness another reduction soon. The potential level for such a drop would be $3,300. Failure to bounce off this level could lead to more breakdowns,
Nonetheless, if we also look at the price actions from where it initiated correction in March, Ethereum is still trading in a range.
But the major indicator for bullish lies in the double-bottom pattern, which started at $2,817 two weeks back. While it is still in play, an increase above $4,094 (March’s high) should validate a breakout for a mega rally.
ETH’s Key Level To Watch
A successful climb above the key monthly resistance should propel buying to the next resistance levels of $3,702 and $3,887. A flip through the crucial $4,000 resistance could activate a huge rally in the near term.
The $3,350 level has been supporting the market for a week. If the price drops below it, the next closest levels to watch for pullbacks are $3,222 and $3,059, followed by the monthly low of $2,817.
Key Resistance Levels: $3,525, $3,702, $3,887
Key Support Levels: $3,222, $3,059, $2,817
- Spot Price: $3,490
- Trend: Bullish
- Volatility: High
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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