Ethereum Creeps Back to Bullish Order Block

After surpassing the resistance level of $3692.0, Ethereum’s price has gradually declined. Currently, it is approaching a bullish order block at $3049.0, a critical level that could potentially revive its bullish trend.

Ethereum has struggled to regain its bullish momentum after an impulsive price expansion on May 20th. This surge led to a sudden price increase of over 20% in a single day, breaking out of a downward parallel channel that had persisted for over two months.

Ethereum Key Levels

• Demand Levels: $3145.0, $2717.0, $2170.0
• Supply Levels: $3727.0, $4100.0, $4868.0

What Are the Indicators Saying?

At the peak of the impulsive bullish expansion on May 20th, the Relative Strength Index (RSI) indicated buyer exhaustion. This was further confirmed by the dominance of the Smoothed Heikin Ashi Candles on the daily chart, which signaled a potential reversal. The current price decline towards the bullish order block at $3049.0 suggests that Ethereum may find support at this level, providing an opportunity for renewed bullish momentum.

The RSI’s signal of buyer exhaustion, coupled with the Smoothed Heikin Ashi Candles’ bearish dominance, indicates that the recent price decline could be a healthy correction rather than a trend reversal. As Ethereum approaches the bullish order block, traders should watch for signs of support and a potential rebound, which could signal the resumption of the upward trend.

 

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