Following several gains earlier this month, Ethereum flipped a four-month channel and marked a new high in a year. Failed to sustain momentum and rolled back inside the channel. What happened?
Ethereum has been mirroring Bitcoin’s pattern for some weeks now. The correlating price actions made the second-largest crypto by market cap reach a new milestone in the past week.
Looking back to what happened earlier this month, when the price surged through $1.9k to $2k in two days with a series of gains, ETH tested $2,150 as a ten-month high and fell off after it entered an oversold area.
It sits above $1,790 and traded in the channel for a week. A sudden spike occurred yesterday and the price retested the $1,950 level around the upper boundary of the channel as resistance. A second retest around that price level led to a rejection earlier today.
The bulls are trying to return but the bears are creating a strong wall around the crucial $2,000 level. If this level continues to pose a threat to buying pressure, ETH may face a serious hurdle to overcome it. That could trigger selling pressure if it finds the crucial level difficult to reclaim.
In this case, the lower boundary of the channel would be the next selling target before the price can pick up again. ETH will need to surpass the previous resistance level to claim more highs. It lost 3% over the past 24 hours.
ETH’s Key Level To Watch
The immediate $1,948 and $2,030 resistance levels are important areas of interest for the buyers in the next leg up. Reclaiming them should skyrocket the price to $2,160 and $2,304 in the future.
As ETH pinned weekly support at $1,788.4, a breakdown from there could sink the price to $1,722.9 in the coming weeks. The $1.678.9 and $1,590.5 levels are the next to watch for more decrease.
Key Resistance Levels: $1,948, $2,030, $2,160
Key Support Levels: $1,788.4, $1,722.9, $1,678.9
- Spot Price: $1,894
- 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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