The price of Ethereum has been hovering around the $1.8K mark, showing a period of relative stability in recent times. However, despite multiple attempts, the cryptocurrency has struggled to break through the crucial resistance level at $2K, indicating a lack of strong demand.
Technical analysis reveals some interesting insights into Ethereum’s current situation. On the daily chart, the price has faced rejection after three failed attempts to surpass the $2K resistance region in the past month. This rejection coincided with a decline in bullish momentum, suggesting increased selling pressure at that level. Nevertheless, the 100-day moving average (MA) has provided consistent support at $1,854, preventing further declines.
Moving to the 4-hour chart, Ethereum experienced a bullish rally in mid-June, leading to a test of the major resistance at $2K in mid-July. However, it is currently facing the 0.5 Fibonacci retracement level at $1,827, which serves as significant support. The price remains trapped between the static resistance at $2K and the critical support at $1,850, indicating a potential range-bound market with consolidation candles.
In the mid-term, a breakout from this price range will likely play a crucial role in determining Ethereum’s future prospects. If the price breaks below the 50% Fibonacci level, the next potential stop could be the 61.8% level at $1,780.
Overall, Ethereum seems to be in a period of consolidation, with the price being held by the 100-day MA and struggling to overcome the $2K resistance. Traders and investors will be closely watching for a breakout or further signs of demand to determine the cryptocurrency’s next direction.
Note: This content is for informational purposes only and should not be considered financial advice.
