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- ETH price has bounced back after crashing by almost 20% last week
- Super trend indicator flashed a buy signal on the 4-hour chart
- Currently priced at $2513, ETH is at a low of 5% from its recent ATH
The ETH price recently hit an ATH of $2674 on April 22nd, after which it has been trading lower. The strong momentum was followed by a pullback which led to the price approaching the support level of $2104. Upon analyzing the daily chart, ETH appears to be hovering at a crucial level, creating a sense of indecisiveness in the market.
The price action of ETH is confined in the outer channel and is expected to smash an ATH this particular week. However, the volume has significantly declined after breaking out towards the upside from the ascending triangle chart pattern. Even though the price action is demonstrating relative strength, the bulls should pay heed to the possibility of a potential head and shoulder pattern.
Source-tradingview
Bullish divergence on the 6-hour chart
Source-tradingview
On examining the chart from a technical perspective, ETH is trading above the crucial resistance at $2485 (FIB 0.786). If the price action managed to close above this particular level, then we can expect the asset to hit the further target of 2800.
ETH confirmed bullish divergence after we saw the price action from lower highs, whereas the oscillators RSI and MACD formed a higher low.
The price of ETH is lingering above key EMA levels, which are acting as strong support levels. In case of a potential head and shoulder pattern, the 20 EMA, 50 EMA, and 100 EMA will swoop right in to provide support at $2356. $2308 and $2204 levels, respectively.
The RSI headed from the overbought zone to the equilibrium zone and is now stable in the range of 59.
MACD has undergone a bullish crossover with the MACD line above the signal line, indicating bullish reversal for the time being.
CONCLUSION: ETH’s price has seen a strong recovery over the past three days after having lost a significant bit of its trading price after the time it broke its ATH.
The bullish momentum that caused ETH to recover from this dip continues to be healthy. A breakout from the lower channel is suggesting stronger moves for this asset. However, the possibility of ETH skipping the right shoulder has not been confirmed yet. In such cases, it is wise not to take long positions. This coming week will play a vital role in determining the overall momentum of this asset.
SUPPORT : $2055 and $210
RESISTANCE : $2546 and $2674
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
