Ethereum saw a small increase over the past days which made the token to break slightly above $155. Since the break, ETH has been finding it hard to move further. Meanwhile, the cryptocurrency is experiencing a low amount of volume and volatility since the breakout on November 27. If the short-term bullish setup fails to materialize, ETH may fall back to the previous bearish swing. As the time of writing, Ethereum is priced at $152.
Ethereum (ETH) Price Analysis: Daily Chart – Bearish
Key resistance levels: $163, $177
Key support levels: $141, $131
The daily outlook for Ethereum suggests a bearish trend which is now forming in a wedge pattern. Following this pattern, there’s no sign of bullish momentum for Ethereum at the moment until a wedge breakup triggers, probably at $177 resistance. Notwithstanding, the buyers are likely to meet immediate resistance at $163 if the buying pressure becomes intense.
The recent price increase gave the RSI a little rise above its 30 levels. A strong bullish regroup could continue to keep the RSI in an upward movement, making the price of ETH to reach the overbought area in no time. Currently, the MACD for Ethereum is in the bearish zone. A lower expansion of the oscillator could roll the price back to wedge’s support at $141 and $131.
Ethereum (ETH) Price Analysis: Hourly Chart – Bullish
Since Ethereum broke out of the triangle pattern, the price action has been roaming on a sideways, now sitting on the broken triangle. Though, the price is now forming in a rising wedge. But it appeared the market is looking for a retest at the lower boundary of the wedge at $150 before bouncing back. A drive beneath the wedge may send ETH to near support at $141.
Bouncing off the wedge would be a perfect move and most especially an interesting experience for the bulls. The next resistance to watch out for is $156, followed by $160 – where the wedge’s upper boundary lies. We can see that Ether is currently lying at the mid-level of the technical indicators to show an indecisive market. However, we may need to wait for a while to see the actual play before taking a position.
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Michael Fasogbon is a professional Forex trader and cryptocurrency technical analyst with over five years of trading experience. Years back, he became passionate about blockchain technology and cryptocurrency through his sister and has since been following the market wave.