Since April, Ethereum has successfully defended its support level of 1817.0, with all attempts to breach it proving unsuccessful. Currently, Ethereum is trading within a range, constrained below the supply level of 1900.0. The formation of a symmetrical triangle, characterized by lower highs and equal lows, suggests an impending breakout. This pattern has materialized on the 24-hour chart, indicating the market’s readiness for a significant price movement.
Key Levels for ETH
Demand Levels: 1817.0, 1650.0, 1550.0
Supply Levels: 1900.0, 2000.0, 2100.0
Indicators Analysis
In April, the Stochastic indicator signaled the exhaustion of buyers as the price of Ethereum reached 2130.0. This exhaustion led to a sharp decline in price. Subsequently, the daily candles, which had previously been above the Moving Around (periods nine and twenty-one) since an early May crossover, shifted below it. The Stochastic is not yet oversold, suggesting that there is still potential for further price decline, potentially breaking the support level of 1817.0. A breakout above the bearish trendline, on the other hand, could indicate a resumption of the bullish trend.
In summary, Ethereum’s strong defense of the 1817.0 support level has led to a consolidation phase below 1900.0. The formation of a symmetrical triangle on the 24-hour chart indicates an upcoming breakout. The Stochastic indicator suggests potential further price decline or a bullish trend resumption. Traders are closely watching these levels and indicators for Ethereum’s next significant move.
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