warning: The results of the following analysis are the author’s opinions only and should not be considered investment advice.
Ethereum [ETH] It posted a double digit high over the past week as it bounced off the $1440 support level. With the $1600-1700 range reflecting the supply area for bearish moves, the swing king may face short-term hurdles in the upcoming sessions.
If the current resistance holds, it may reject the high prices and give way to a stagnation phase. At the time of writing, ETH is trading at $1,573.8.
ETH daily chart
ETH has revived its bearish strength after the collapse of the long-term rising wedge. However, the currency’s growth over the past week has helped the bulls recover from the lower band of the Bollinger Bands (BB). This buyback now faces hurdles near BB’s baseline (green).
With bears forming obstacles near the 20 EMA (red) and 50 EMA (cyan), ETH could see a slight rejection of the price rally from the immediate resistance.
The altcoin has also seen a downward trend in volumes during the recent rally. This reading confirmed the weakness of the bullish move and made the currency more vulnerable to choppy breakouts.
A close below the $1600 resistance could lead to the downside. In this case Possible goals will be in $1,513-1,440 range. A possible break above the $1600 resistance level could pave the way for a relatively short bullish wave towards it $1703 area.
The Relative Strength Index (RSI) moved along its equilibrium threshold last week. Continuing the position below this level will help sellers maintain their advantage.
Additionally, Accumulation/Distribution (A/D) saw lower highs and veered lower with the price. A possible reversal from trend line resistance would confirm the bearish bias. However, any bullish crosses on the MACD may indicate a bearish invalidation.
Due to several resistances in the $1600 region along with the bearish crossover of the 20/50 EMA, the momentum has tilted towards the sellers. A sustained close above the 20/50 EMA would invalidate the downtrends. The objectives will remain as discussed above.
Finally, Investors/Traders Need to Pay Attention to Bitcoin [BTC] a movement. This is because ETH shares an amazing 95% 30-day correlation with Coin King.