Ethereum Ascends Back to Resistance Zone

Ethereum has once again reached a critical supply zone, marking its third test since August. The price tested this zone in August and September, highlighting the market’s ongoing consolidation phase. In August, the price dropped into a bullish order block at $2,430.0, which acted as support and prevented a further decline into the $2,252.0 demand zone. This retest of the bullish order block led to the formation of a double-bottom pattern, sparking a rebound that propelled prices back to the $2,739.0 supply zone.

 

Ethereum Key Levels

Demand Levels: $2,430.0, $2,252.0
Supply Levels: $2,739.0, $3,086.0

Technical Indicator Insights

The Williams Percent Range indicator has been particularly effective in signalling overbought and oversold conditions during this consolidation period. Every time the $2,739.0 supply zone was tested, the Williams Percent Range displayed overbought conditions, providing early signs of a potential reversal. Furthermore, the 9-period Simple Moving Average (SMA) has consistently signalled the establishment of reversals, with its position shifting above (indicating bearish sentiment) or below the candles (indicating bullish sentiment).

A breakout above the $2,739.0 resistance zone is highly anticipated, as it could lead to a shift away from the current consolidation phase. If the bullish momentum continues, the next target would likely be the higher resistance level at $3,086.0, setting the stage for further upside movement.

 

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