The ETH technical analysis displays a bullish failure to start an uptrend within the falling channel leading to consolidation at the $1250 support level.
The ETH price action highlights a falling channel in the daily chart leading to the $1500 support level fallout coinciding with the 50% Fibonacci level. Currently, the price action displays a consolidation face at the $1250 base with multiple higher price rejection candles near the overhead resistance of $1365. However, the recent 3.6% jump in the Ethereum market value leading to a bullish candle with the spike in trading volume teases a bullish breakout.
The Ethereum price action shows higher price rejection from the 50-day EMA. The increase in buying pressure teases a bullish breakout. The intraday trading volume in Ethereum is $9.624 Billion.
ETH Technical Analysis
The ETH price action displays a long coming declining trend Leading to a falling channel pattern. The bearish pattern accounts for a price drop of 37%, leading to the fallout of the $1500 mark.
The recent bull cycle fails to gain momentum from the support trendline leading to a consolidation phase at $1250. Furthermore, the higher price rejection candles near $1365 project a high supply pressure above the consolidation range.
Currently, the price action displays a 1.26 % jump as a follow-through of the 3.67% bullish candle formed yesterday. Moreover, the intraday trading volume spike supports the bullish reversal candle.
Hence, the gradually increasing momentum of the bull cycle increases the bullish breakout possibility. The breakout rally can result in a price jump to the 50% Fibonacci level at $1460 to retest the bearish breakout.
On a bearish note, if ETH prices reverse within the range, the increased selling will endanger the bullish dominance at $1250.
The reversing RSI slope in the nearly overbought crosses the 14-day SMA in an attempt to reach the Halfway line. This reflects an increase in the underlying bullish sentiments teasing a breakout entry shortly. Additionally, the increasing bullish gap between the MACD and signal lines after the recent bullish crossover reflects an increase in buying pressure.
Therefore, the technical indicators show growth in bullish demand for Ethereum. As a result, the ETH technical analysis forecasts a bullish breakout of $1365 to challenge the 50% Fibonacci level at $1460. Hence, the sideline traders can find multiple buying opportunities at the current market price.
Resistance levels- $1365 and $1460
Support levels- $1250 and $1133