Over the past trading sessions, Ethereum has managed to appreciate and topple over the $1,600 price zone. At the moment, the altcoin might be displaying consolidated price action.
In the past week, the coin has jumped by nearly 8%, which has made ETH breach a crucial resistance level of $1,430. It has now turned that level into a support zone. On the daily chart, the Ethereum price also formed a bullish pattern. The technical outlook of Ethereum pointed out that the bulls were taking charge of the price action. Demand for the altcoin had also moved north.
The buying pressure had noted a downtick but was still bullish. Accumulation also noted a positive change as a result. If the bulls witness a further increase in demand, ETH could break past the $1,700 mark. The market capitalization of the altcoin also increased over the last 24 hours, which indicated that buying strength also shot up.
Ethereum Price Analysis: One-Day Chart
ETH was trading at $1,686 at the time of writing. After piercing through the $1,430 mark, the altcoin continued to break past multiple resistance levels. The overhead price ceiling stood at $1,700, breaching which the coin can witness resistance at $1,770 respectively.
The crucial support line for Ethereum stood at $1,560. But a fall through this level will cause ETH to fall below $1,430. The bullish force seems to have taken over, although the rally could be short-lived.
Ethereum formed the bullish megaphone pattern, which is also called the broadening pattern that highlights volatility.
In this case, the pattern signifies the presence of higher highs and lower lows, which means that the altcoin was bullish. The amount of ETH traded in the last session remained positive, implying positive buying strength.
Technical Analysis
After being stuck inside the bearish zone, demand managed to move into the positive zone over the last few trading sessions. The Relative Strength Index was above the 50 mark and was parked near the 60-mark, indicating that buyers outnumbered sellers.
The indicator noted a small downtick, it is crucial that demand climbs on the chart further if ETH has to trade near $1,800.
In accordance with increased demand, ETH moved above the 20-Simple Moving Average (SMA) line as buyers started to drive the price momentum in the market.
Other technical indicators have also pointed towards a bullish force. Moving Average Convergence Divergence which measures the price momentum and reversal depicted in green signal bars is reflected due to buying signals on the chart.
Parabolic SAR indicates the price direction and the change in the same. The dotted lines were below the candlesticks which meant that the price was moving on the upside.
Featured Image From UnSplash, Charts From TradingView.com
