Ethereum Price Analysis: ETH Won’t Turn Short-term Bullish Till This Level Breaks
The ETH market currently resembles the sideways consolidation that is also taking place across all other cryptocurrency markets.
Thinking of this phase as a prolonged accumulation period, many traders might suspect this structure as the bottom for Ethereum price, but let’s take a closer look.
Macroeconomic factors still affect the market, while spot volume is low, and the Open Interest rate has grown very little. But the big question is whether this is a buying opportunity, similar to Jun-July 2021, or the bottom is not yet here.
The Daily Chart
Technical analysis by Grizzly
ETH is trading inside a giant ascending channel on the daily chart. Currently, the price is at the bottom of this channel.
The RSI 30-day is below the baseline, which shows that bears have the market’s control. By adding an EMA 30-day ($2.7K at the moment), it can be seen that the recent price spikes have started when the RSI crossed the baseline and the price broke above the EMA 30-day line.
One may wait for these two confirmations from a technical standpoint before re-entering the market. A well-known unwritten rule among traders says: “It is better to buy more expensive but at lower risk.”
The 4-Hour Chart
on a 4-Hour timeframe, the price fluctuates inside a triangle and below the Ichimoku cloud (similar to BTC). This combination makes it challenging for ETH to break above it.
Crossing above this area and forming a higher high above the red line ($3040), which has been significant resistance in recent months, is critical for any possible recovery in the short term.
Many technical analysts consider this structure significantly bearish based on the above analysis. The current market sentiment needs a catalyst (demand) before signaling a possible shift in trend. The bottom line is that Capital Preservation is the primary goal in financial markets.
OhNoRipple via https://www.ohnocrypto.com/ @CryptoVizArt, @Khareem Sudlow