The rejection at $197 has made Ethereum price to cut to $179, an important support zone where the next price movement is most likely to play out. On the upside, $190 remains a key resistance for the bulls. Meanwhile, ETH is turning negative on the technical indicators. The bearish trend may become strong if the supply is increasing.
Ethereum (ETH) Price Analysis: Daily Chart – Bearish
Key resistance levels: $189, $197, $203
Key support levels: $170, $163, $153
On the daily chart, Ethereum was rejected at the forming wedge’s resistance on October 11with a $20 price cut to $179 at the moment. Currently, the market is relying on minor support at $175 but a huge selling pressure could plummet the price to $170, $163 and $153 support (meeting September 26 low) before we can see more falls.
Ether is now waiting at the zero level of the MACD to show that the market is indecisive at the moment. Conversely, the crypto trading signals a downward movement on the RSI indicator. If the bulls can defend the $179 support well, we should see an upswing to $189 to test the wedge’s upper boundary. Moving out of the wedge could further drive Ethereum to $197 and $203 on the upside.
Ethereum (ETH) Price Analysis: 4H Chart – Bullish
On the 4-hours time frame, Ethereum is now testing the channels lower boundary following last weekend price pull at $197. The market has reached a critical price zone as trend reversal or continuation is currently at hand. Penetrating the channel formation could lead to a serious price disintegration to $160 support before next move plays out.
Bouncing off the channel’s support should provide another opportunity for traders to long Ethereum at $169 (testing the grey descending resistance line). Surpassing this resistance line should confirm a short-term bullish continuation and at the same time keep the trend in the ascending channel. Meanwhile, the crypto trading signals a sideways movement on the MACD but the RSI continues to fall to show that the sellers are still present.
ETHEREUM SELL SIGNAL
Sell Entry: $179
TP: $171 / $160
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.