Ethereum’s [ETH] uptrend was halted as it followed Bitcoin’s [BTC] suit. The world’s largest altcoin was still down by almost 6% this week and the latest price movement could signal its entry to another extended period of the current range-bound action for a few more days.
There is indecisiveness among the bulls and the bears. Buying continued near the support and selling overpowered the market close to the resistance line.
Over the last 24-hours, Ethereum [ETH] dropped by 2.25% which drove its price to $2,439. At the time of writing, the digital asset held a market cap of $284.2 billion while registering a 24-hour trading volume of $23.9 billion.
Ethereum [ETH] Daily Price Chart:
A rigid ceiling has formed a little below the $3,000 on the daily Ethereum [ETH] with the horizontal trendline of the ascending triangle. As per convention, a breakout from this pattern could result in a bullish outcome. The volume has been moderately high depicting a strong backing. But the moving averages depicted a contradictory picture.
While the 50 DMA [Pink] continued to hover above the ETH price candles, following the latest correction, the 100 DMA also climbed above the projecting bearishness in the market.
The green closing bars of Awesome Oscillator [AO] demonstrated a weak but bullish momentum in the near term. The Chaikin Money Flow [CMF] also made a much-needed headway above the zero-line depicting an inflow of capital into the coin market. The RSI, however, continued to reel under the 50-median line as selling pressure countered the buying demand.
Ethereum [ETH] tested $2,900 on several occasions but a breakout was denied on each attempt. Hence, if it gains the necessary momentum to break above this level, it could target other resistance levels of $3,378 and $4,084 respectively.
On the contrary, if the bullish cues is invalidated by the bears and market tilts towards sell-side, ETH could sustain a drop to its nearest support area of $2,208. Failing to defend this level could result in a revisit to lows of $1,589 and $1,115 respectively.