ETH Technical Analysis: Bleeding Buyers Want A Post-Retest Reversal
Table of contents
Key Technical Points:
Past Performance of ETH
As warned in our previous analysis, the ETH prices take a bearish turnaround from the 100-day SMA leading to a downfall below the $1700 mark. The retracement comes as the retest of the bullish breakout of the consolidation range with the overhead resistance of $1635. Furthermore, the bearish opposition from the 100-day SMA results in multiple higher price rejection candles teasing a potential downtrend continuation.
Source - Tradingview
ETH Technical Analysis
The ETH price chart shows a declining trend in the day trading volume during the recent bearish retracement, increasing the possibility of a bullish turnaround. Hence traders hoping for the post-retest reversal should wait for a price action confirmation.
As the market price remains close to the 10-day SMA, the bullish influence over the 50-day SMA increases, leading to a lateral shift.
The daily RSI slope takes a lateral shift in trend near the overbought boundary as the prices retrace from the 100-day SMA., representing a weakness in the underlying bullishness and reducing the chances of a bullish reversal.
The MACD indicator displays a positive trend in the fast and slow line, struggling to avoid a reversal as the bullish spread decreases. Hence, the technical indicator warns of a downfall below the $1635 mark.
In a nutshell, the ETH technical analysis suggests a weakness in buying pressure, but the lack of bearish commitment keeps the reversal hope alive.
Upcoming Trend
If the ETH prices sustain above the $1635 mark, a post-retest reversal will attempt to 100-day SMA again. Hence, traders can expect an uptrend continuation from $1635 to reach the $1900 resistance level.
Conversely, if the daily candle fails to avoid a closing below $1635, we can see a 10% price drop to test the $1475 support level.
Resistance Levels: $1700 and $1900
Support Levels: $1635 and $1475
