Ethereum Is Up 4% But Are The Charts Pointing Towards Sustained Recovery?
Ethereum was bullish on its chart today at the time of writing. ETH broke its consolidation phase and rose upwards by 4% over the last 24 hours. The king altcoin secured $1900 as a strong support level. After the coin moved past the $1700 level, the bulls started to show up in the market.
The demand for the altcoin also came back into the market after Ethereum moved up and past the $1700 price mark. Continued buying strength can push ETH to trade above the $2000 price level.
If the bulls continue to trade above the $2000 price level then the recovery would remain strong in the market. Currently, Ethereum has been down by 60% from its all time high of $4800, which the coin secured in the month of November, 2021.
The overhead price ceiling for the coin stood at $2100. If the bulls fail to hold the momentum the coin could go back to the consolidation phase.
Ethereum Price Analysis: One Day Chart
ETH was priced at $1949 at the time of writing. The coin’s nearest support line was $1900, a fall from which could push ETH near $1700.
The break from the consolidation caused the coin to rise by 4% over the last 24 hours. For the coin to invalidate the consolidation bit, the coin has to attempt trading near the $2100 and then at $2400.
If bulls the tire out, Ethereum could be sandwiched between $1700 and the $1900. The volume of the coin declined in the last trading session.
The volume bar was red in colour which indicated that the bearish pressure still remained in the market.
Technical Analysis
Buyers came back in the market as demand for the coin increased on the one day chart. The Relative Strength Index noted a move upwards as buyers regained confidence.
Despite the increase in the buying strength, RSI noted a small downtick which could mean that selling pressure was back in the market.
The coin was priced above the 20-SMA which is a sign of bullishness and push from buyers cause price to rise further. This indicated that price momentum was driven by buyers in the market.
Related Reading | TA: Ethereum Tests $2K, Why ETH Could Extend Rally
As buyers increased in number as seen on the RSI, Ethereum flashed buy signals on the one day chart. Awesome Oscillator depicts the price momentum and it showed green histograms signalling a change in price momentum. Green histograms on the AO can be attributed to a buy signal. Bollinger Bands indicate the price volatility.
The indicator showed tightening of the bands which can be related to a change in volatility or an incoming price fluctuation in the market.
Although Ethereum rose on the charts, indicators have painted a mixed signal. Only with sustained buying strength can Ethereum invalidate the bearish thesis completely.
Related Reading | TA: Ethereum Reaches Crucial Juncture, Can The Bulls Make it
