Ethereum is starting the week in the red, and is currently below crucial resistance around $1660. Indeed, the value of ether decreases by 4% over the weekend after having approached this level. So, this area could be a major hurdle for the bulls. The latter are indeed attempting a bullish rally after a week turbulent with economic news. However, we should expect Eth to remain in range in this rather quiet week.
Ethereum: Buyers Facing Crucial Resistance
The bears won the battle over the weekend for most major cryptos. Indeed, bitcoin lost 2.5%, ethereum fell 4% and Ripple 7%. For the ether case, this situation appears to be a distribution phase. Indeed, after a rise during the week dedicated to the Fed, short-term buyers are beginning to close their positions. This decreases the bullish pressure on ETH.
Alongside this, the sell orders placed at this $1660 resistance also contributed to Ethereum’s decline. Which makes it a major hurdle for the bulls. In addition, this zone is near the opening price of the Merge day. In order to break through this level, buyers will need to look for more DIPs. In this case, the closest support is found at $1500. If this level does not hold, we can consider the return of the price towards $1430.
More DIPs to reach before the bullish rally?
Two bullish scenarios are likely. The first is an immediate break of the $1660 resistance on Ethereum. For the second scenario, one could envision the price of ETH returning to lower levels, before a bullish rally. In this case, it will be necessary to monitor the closest supports.
One of the levels to watch closely is the “Gap” which is around $1430, visible on an H1 chart. This is a “vacuum” between two successive candles. In most cases, the price of an asset will always tend to close a gap before continuing a trend. What seems to be happening on ether right now. In other words, the current decline could be a correction that will allow the price to close this gap.
The rebound of the price on this level will thus be a bullish signal. In this case, we can envisage an explosive rise for Ethereum, possibly allowing the breakout of the crucial resistance of $1660.
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