Do you want to sell Ethereum 2023? Here’s what you need to know

Disclaimer: The information presented does not constitute financial, investment, trading or other types of advice and is the opinion of the author only

  • ETH has been in a short-term price correction.
  • It could retest the $1,247 support or drop lower.
  • A typical breakout on the upside would negate the bias.

Bitcoins [BTC] An attempt to break the $17,000 resistance on January 4th is upside down Ethereum [ETH] With the aim of reaching the $1300 mark. However, BTC faced rejection at $16.95K, which prevented ETH from rising at $1,270.

The price action in the past few hours has formed a descending triangle pattern on the 2 hour chart along with a flagpole which can be considered as an overall bullish pennant pattern.

However, investors should be careful as the technical indicators do not indicate bullish momentum in the next few hours.

Read Ethereum [ETH] predict the price 2023-24

Bullish Flag: Is a Breakout Possible?

Source: ETH/USDT on TradingView

A pattern breakout to the upside and associated gains is unlikely, technical indicators suggest.

In particular, the on-balance volume (OBV) decreased, which meant that buying pressure was limited. The RSI also gradually retreated from the overbought area and was near the midpoint, indicating that the buying pressure has eased.

Although Chaikin Money Flow (CMF) crossed above the zero line, it moved sideways and remained near the neutral level. It showed that the buyers have the upper hand but not much leverage to keep the sellers in check.

Therefore, sellers can push ETH lower to test the $1,247 support or the 26-period moving average at $1,246.39. However, bearish BTC could push ETC lower to breach the pattern at the downside target at $1234.15.

But a convincing breakout on the upside would negate the bias. Such a rally would target the $1,265.49 target, but the bulls will have to overcome several hurdles.

Are your holdings blinking green? verification ETH profit calculator

ETH has seen an increase in demand in the derivatives markets

Source: feeling

Despite the price correction, ETH continues to see increased demand in the derivatives markets, as evidenced by Binance’s positive and high funding rate for the ETH/USDT pair.

Moreover, the daily active title remained relatively unchanged despite the decrease in OBV as seen on the 2-hour price chart.

Therefore, investors should watch for a convincing CMF breakout below the zero line to confirm further bearishness before entering any short positions. Additionally, a bullish BTC will invalidate the bias and send ETH into an uptrend; So it’s worth tracking too.

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