Ethereum Technical Analysis and Key Points
While Bitcoin is slowly gaining momentum towards the Bullish territory, Ethereum is still lagging behind.
As of the time of writing, Ethereum seems to be struggling to record gains against the US dollar, while it steadily declines further against Bitcoin. Based on technical analysis, Ethereum is deciding its next move whether to hit the $875 major resistance mark or move below the $850 support level. On the 4-hour chart, there was break under the bullish trendline, with strong support at the $860 level.
(ETH chart courtesy of Highcharts.com)
For more than four days now, Ethereum is having an extended period of consolidation, trading between the range of the $850 support level and $875 resistance level.
While the Ethereum-USD trading pair appears to be horizontally consolidating, the Ethereum-Bitcoin trading pair is steadily declining due to the increase in demand and buying interest for Bitcoin after making some upward movement to the $11,500 level. As of press time, ETH is currently trading at the 0.075 BTC level, which is a break below the 0.076 BTC support level.
Ethereum Price ETH/USD Analysis
Looking at the 4-hour chart of ETH/USD, we can observe some bearish signs emerging. The selling pressure for Ethereum was able to push the pair below a connecting bullish trendline with support at the $860 level. However, there was no follow through after the break as the pair rolled back towards the $850.00 support, placing the price in a consolidation phase.
On the other hand, there appears to be a bearish trend forming with resistance at $865 to $870. A breach above the trendline resistance will be needed before we can see an upward rally towards the $900 level. On the down side, if the pressure from sellers pushes the price lower than $850, we may see further declines from market reaction.
As of the moment, the price action is still at neutral as long as ETH/USD is above the $850 support level. The next few trading sessions will be a deciding factor, and a follow through above $875 could make way for further upward gains in the near term.
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