Posted 37 minutes ago
Ethereum price analysis suggests consolidation near the upper level. The price is hovering above $1,700 while maintaining a bullish bias. However, the bears are trying to pull the token lower as the price moves in a very tight trading range.
Despite a tepid trading session, Ethereum price is moving inside the ascending channel. This is an uptrend, which indicates that the price would continue to rise in the short term. The immediate upside target could be $1,800 if buying remains inside the formation.
- Ethereum price extends weekend consolidation with modest losses.
- The price has come back from the strong resistance zone which extends from $1,770 to $1,750.
- The bearish RSI signifies aggressive offers if the price stays below $1,680.
Ethereum Price Extends Consolidation
Ethereum price formed a daily “rising wedge” pattern, making higher highs and lower lows, indicating positive strength.
However, the formation of a double top near $1,750 is challenging the bull. After testing the swing highs of $1,782.61 on July 27, the price entered a pullback to test $1,556.96.
The retracement is preceded by an impulsive move from the July 12 lows at $1,003.87. It also coincides with the 50% Fibonacci retracement, which is a excellent tool to calculate the range of a retracement.
In the previous session, the formation of a green candlestick indicates the presence of buyers near the lower levels. After a slow week. However, there is a strong barricade of resistance placed around the $1,750 level. If the price is able to break the resistance level amid sustained buying pressure, we can expect good upside momentum towards $1,855.
The RSI (14) is trading above 50, indicating that the average gain is greater than the average loss. Any rise in the indicator would strengthen the bullish argument.
However, the bearish divergence means that the price could retrace towards the 0.78% Fibo. level towards $1,617.
Over the four-hour timeframe, Ethereum price formed a “Double Top pattern,” which made it difficult for the buyer to hold long positions for too long. If the price fails to break through the resistance quickly, we can expect a good drop down to $1,580.
However, the price has recovered from the lows of $1,685.89, further if the bulls manage to hold the $1,700 mark on an hourly basis. This would mean that this is a healthy correction and that the price is a solid base to initiate a further rise. In this case, the Ethereum price would touch the $1,750 followed by the psychological level of $1,800.
The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.