Ethereum price consolidates for the second day. The ETH/USD pair didn’t open the week as expected and looking for a fresh trading signal. The altcoin is lagging behind the largest cryptocurrency despite the weakness in the U.S dollar.
- Ethereum price trades in a range-bound manner with a negative bias.
- As long the price holds above the $1,700 level, more chances it could move further higher.
- A significant resistance zone is holding near the $1,780-$1,800 zone.
Ethereum price stabilizes
Ethereum rallied from the hype generated through the Merge announcement. An awesome recuperation is seen from its recent bottom of $882 (June 18). Ethereum on the weekly chart formed a long-term bottom and is ready to march to a 50% Fibonacci retracement ($2,240) of an earlier bearish impulse move starting from $3,560 to $882, as shown in the chart.
The $882 bottom had formed and is expected to be held by the buyers in the near future. ETH/USD formed a ” Price & Volume Contraction” pattern. On May 17, a big bearish candle was formed at the bottom, along with more than high volume, after that as shown in the chart, the price reversed from that bottom and started its journey toward swing highs. The same happened recently.
Also read: http://Just-In: CME Clears Regulatory Hurdle, Launches Ether (ETH) Options Ahead Merge
History tends to repeat itself: Technical analysts believe that history tends to repeat itself. The repetitive nature of price movements is often attributed to market psychology, which tends to be very predictable based on emotions like fear or excitement.
The latest support is set at $1,697 with the resistance at $1,800. The bulls have constantly attempted to goal $1800 resistance to preserve the rally. However, as the graph shows, the rally has stagnated and the bull now attempts to consolidate at a near location.
The Price needs to consolidate near the resistance in order to give a good breakout near the higher levels. The price moved more than 20% in just six trading sessions. A cool-off might help new buyers to enter more positions.
However, if the buyers failed to hold the $1,685 level then we could witness more losses. This would also result in long coverings, and put the selling pressure more that could weigh down ETH to the lows of $1,480.