Ethereum Price Bounces Again But Touching These Levels Could Trigger A Sell Off

The Ethereum price has risen once again over the past 24 hours. Over the last day, ETH saw an 8% increase.

Altcoin is now trading above a number of levels. They have turned these support lines into their main resistance level. Altcoin’s bullish sentiment was evident at the time we wrote this.

The price action turned bullish after the coin saw a gain of more than 20% in just one week. Technically, Ethereum was also favorable as the demand for altcoins turned positive at the time this article was written.

The result was that buying power turned more optimistic as of the writing. Ethereum can target the $1,700 resistance mark only if the bulls can maintain the price above Ethereum’s immediate resistance mark.

The bulls could lose steam and the coin could trade once again in the $1,500 area. It is possible for the coin to drop below $1,690.

The bulls could overturn $1,690 and start a wider trend shift. Ethereum is dependent on buying strength as well as wider market strength.

Ethereum Price Analysis: 1 Day Chart

Ethereum Price
Source: ETHUSD on TradingView| Source: ETHUSD on TradingView

The price of ETH at the time we wrote this was $1,620. In the recent weeks, the price of ETH has been struggling to rise above $1,500.

Ethereum’s recent bullish strength has seen it rise above some resistance levels.

Ethereum’s favorable outlook means that a jump to $1700 is possible, provided the coin surpasses the $1630 price ceiling. The $1,690 price level could be a significant barrier.

The bulls will remain around for some time if the price rises beyond that level.

A drop in the price of Ethereum will see it fall to $1520, then $1,460. This would cause ETH’s consolidation between these levels.

Positive, indicating a rising number of buyers, was the amount of ETH that was traded during the previous session.

Technical Analysis

Ethereum Price
Source: ETHUSD on TradingView| Source: ETHUSD on TradingView

On its 24 hour chart, the altcoin’s buying power has grown to a large extent. Excessive demand led to an overvaluation of the Ethereum price.

Relative Strength Index was at or above 80, which indicates that sellers are outnumbered by buyers in this market.

The price will usually pull back once the asset crosses the threshold of overbought.

The Ethereum price was higher than the 20-SMA, which indicates that the demand for the cryptocurrency has increased sharply and buyers are driving price momentum.

Ethereum Price
Source: ETHUSD on TradingView| Source: ETHUSD on TradingView

Other technical indicators have also pictured that the bulls were in complete control of the altcoin’s price. Green signal bars were being formed by the Awesome Oscillator, which was growing in size.

These are the buy signals. The AO indicates the price momentum, and strength of the price trend. Chaikin Money flow shows the capital outflows as well as inflows over a time period.

CMF exceeded the half-line. This indicated that capital inflows outpaced outflows. It also predicted a positive price action, which is good news for Ethereum.

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