• Ethereum’s price has been consolidating over the past week, with a key resistance area near the $1800 mark.
• Technical analysis suggests that if the market fails, a pullback to the 50-day and 200-day moving averages (around $1600 and $1400) could be expected.
• A valid break above the $1800 level, however, could lead to another short-term rally targeting the $2K level and then potentially up to $2300.
Ethereum Price Consolidation
Ethereum’s price has been consolidating over the past week as it struggles to break above a key resistance area around the $1800 mark.
Technical Analysis
On the daily time frame, ETH’s price has broken above the symmetrical triangle pattern lately and also above its 50-day moving average line (around the $1600 mark). However, ETH is trading inside a very tight range above this broken triangle and is yet to break with confidence above the $1800 level. If it fails to do so, a pullback toward its 50-day or even 200-day moving averages located around $1600 or $1400 respectively could be expected. On the other hand, if it breaks successfully above this resistance line then another short-term rally could be in store – first targeting an all time high of around $2000 and then further up towards an even higher target of about $2300.
On a 4 hour chart meanwhile, consolidation remains evident as ETH bounces around this same resistance line without being able to break through it yet. The Relative Strength Index (RSI) indicator has also been indicating a clear bearish divergence signal for some time now which might suggest that a pullback is imminent in coming days. In such case support levels at around $1650 or even at about $1500 are likely to be tested before any significant upward movement resumes again for Ethereum’s price.
On Chain Analysis
ETH’s on chain metrics show that whales have been accumulating coins while retail investors have mostly stopped buying ETH tokens since mid February 2021 when prices began stagnating close to their current levels. This indicates that institutional investors are more confident than ever in Ethereum’s potential future growth which makes them accumulate more coins while retail investors remain somewhat skeptical due to current market conditions not allowing prices much room for further upside movement at least in short term perspective.
Conclusion
To conclude Ethereum’s price action appears uncertain right now with technical analysis suggesting that either way – whether there will be an attempt for one last run up towards record highs or instead a retracement back down into support ranges – both scenarios seem plausible given current market conditions as well as on chain data from whale activity in recent weeks