ETH Technical Analysis: Long Consolidation Continues, Should You Buy?
Table of contents
With the overall market witnessing uncertainty, the ETH price counts its lateral walk within a narrow range. The altcoin currently trades at the $1284 mark with an 0.72% intraday jump. If the ongoing selling pressure persists, the prices will retest the $1245 support level.
Key Points:
Source - TradingView
ETH Technical Analysis
The ETH market price is in a lateral trend between the overhead resistance of $1427 and the $1247 support level. Moreover, a descending triangle pattern is produced by the downward movement that occurs within the consolidation area.
The 20-day exponential moving average (EMA) accounts for a decrease of 3.8% over the previous week, keeping the decline in check. However, since there has been no change in trading volume, the market price is currently near the support level, raising the likelihood of a bearish collapse.
Therefore, a downturn to the $1150 level with a 9.5% price drop is imminent if a daily candle closes below the $1247 support level.
On a bullish note, the October 12th lower price rejection candle positively shows intense demand for ETH below $1247. Therefore, breaking the resistance trendline might present sideline traders with a profitable purchasing opportunity during a bull cycle.
Hence, the negative ceiling of $1427 will be reached by the bullish breakout rally of the descending triangle, representing a price increase of 10.85% percent.
Technical Indicator
Relative Strength Index: A bullish divergence in the daily-RSI chart shows a high possibility of a trendline breakout. Moreover, the buyers will gain additional confirmation if the indicator slope jumps above the midline.