Ethereum’s price has printed a substantial increase and finally surpassed the channel’s upper boundary. In spite of this, the cryptocurrency is approaching a critical resistance zone, and if a breakout occurs, an impulsive uptrend would become more likely.
The Daily Chart
Ethereum’s price has experienced an uptrend since breaking above the 50 and 100-day moving average lines and has currently reached the $1.6K critical resistance zone.
This price region consists of two crucial resistance levels; the $1.6K static resistance level, which has been serving as a robust barrier to the price for the last couple of months, and the price’s prior major high at $1680, which typically serves as resistance in an uptrend.
Overall, pushing the price above this vital resistance level could be quite a challenge, and if successful, the market could potentially explode.
However, considering the price entering the overbought zone of the RSI indicator, a short-term consolidation could be possible before the next impulsive move.
The 4-Hour Chart
In the 4-hour timeframe, the price has been forming higher highs and higher lows which is a typical bullish sign. However, the cryptocurrency has simultaneously entered a short-term consolidation and reached the $1.6K resistance level.
Ethereum seems to have gained sufficient momentum to surpass the $1.6K resistance zone. Still, the existing bearish divergence between the price and the RSI indicator might halt the current uptrend for the short term and result in a correction phase with low volatility.
Ethereum Taker Buy Sell Ratio (SMA 100)
Ethereum’s price has been significantly affected by the futures market over the last couple of years.
This chart represents the Taker Buy Sell Ratio with a 100-day standard moving average applied. This ratio demonstrates whether the bulls or the bears are executing their trades more aggressively, with values above 1 indicating bullish and below 1 showing bearish sentiment.
This metric has been rising for the last few weeks, indicating a positive shift in the futures market sentiment, followed by a price surge recently.
While the metric is currently above 1 and is trending higher, a reversal in its trend likely points to the possibility of a bearish reversal and should be monitored closely in the short term.
The post ETH Consolidates Below Critical $1.6K Resistance, What’s Next? (Ethereum Price Analysis) appeared first on CryptoPotato.