Ethereum has reached a critical trading area – where a fresh decrease could take place. However, it remained bullish but has now entered a consolidation phase with a daily 1% loss.
A week ago, Ethereum was trading as high as $1,865 after witnessing an impressive 20% growth within three weeks.
The bears intercepted further increase and the buying pressure paused for a while. It pulled back from that high and found solid ground above the $1,740 level. The bulls managed to step back last week but they have been struggling to push through the previous high.
That led the asset in the middle of consolidation for the past week due to a shrink in volatility. Despite that, the setup still looks bullish on the daily chart. It is currently trading at around its channel’s upper boundary, which has been serving as a dynamic resistance line for months.
ETH’s price has been respecting both the upper and lower boundaries of the channel since it started to form in July. If history repeats, we should expect a severe fallout towards the channel’s lower boundary.
But from the look of this, it is likely to show more strength to flip through the upper boundaries to the $2000 zone if Bitcoin initiates another major leg up. The reverse would be the case if the primary cryptocurrency dips. ETH’s market currently stands at $217 billion as the price sits well above the $1,800 level with a weekly 1% increase.
ETH’s Key Level To Watch
While in the middle of consolidation, the potential support to consider for selling is $1,746, marked as a breakdown level on the lower timeframe. The lower support levels to keep in mind are $1,639 and $1,560 in case of more dip.
If the price increases, it must retake last week’s high of $1,865 before advancing rally to the $2,029 and $2,141 resistance levels.
Key Resistance Levels: $1,865, $2,029, $2,141
Key Support Levels: $1,746, $1,639, $1,560
- Spot Price: $1,814
- 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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