Ethereum appears to have reached a period of consolidation in the charts after rising close to 11% on 29 April. The price went up to $224 on the 30th, but since then the second-largest asset is still under $213. However, the recent analysis indicated that the token could be looking at another correction phase in the coming week.
At press time, Ethereum had a market cap of 23.89 billion dollars, with a significant trading volume of 19.79 billion dollars in the past day.
Ethereum 1-hour chart
The first point that can be seen from Ethereum’s 1-hour chart is that the asset is actually following market trends. The Bullish rally began on April 29th after the token broke away from the symmetrical triangle pattern. The rally’s momentum was strong and ETH broke main support at $200, $208, and $2016 on its way to $225. However, sharp corrections have followed since then, and after a brief spell under support $208, Ethereum was back above the support.
At press time, Ethereum’s valuation is currently navigating the growing wedge trend. According to the trend study, the rising wedge trend is indicative of an imminent bearish pullback. Ethereum’s present is $214, which is just under the $216 resistance. Given that a bearish breakout is taking place over the next week, Ethereum can re-test resistance again at $208. The support at $208 is strong whereas at $211 is more vulnerable to hold ETH’s breakout.
At the moment, market indicators have also indicated a similar direction for Ethereum.
The Relative Strength Index or RSI shows that trading pressure has been strong over the past day, as people entering the market under $200 are now seeking to make a profit. The reduction in buying pressure may also be temporary because another surge is likely to drive the price up again in the longer term.
MACD suggested that the signal line is currently above the MACD line, indicating the beginning of a bearish trend. If this trend is to continue, Ethereum can make it easier to drop to $208 or $211 over the next 48 hours.
Conclusion
Sideways consolidation following a price rise is also perceived to be positive if the market includes a rebound within 48 hours. It’s been more than 48 hours since the rally took place on the 29th, so the chance of a decline has a higher likelihood. Ethereum might re-test support $208 by 5th May or under the next 7-days.