Yesterday’s session was eventful for the crypto market. For ether (ETH), bulls dominate and the underlying trend remains bullish. However, a bearish scenario cannot be ruled out.
The underlying trend remains in the hands of the bulls
As we said earlier, the underlying trend of ether remains in the hands of the bulls. On the weekly scale, we see that Ether (ETH) has crossed the upper part of a symmetrical triangle. Additionally, the RSI is starting to rise into the overbought territory. But not that, the volume is also low, which demonstrates the stability of the trend. However, it could be that the price retraces to the oblique support of the triangle, before starting to rise again.
A bearish scenario for Ether (ETH)
Although the underlying trend remains bullish, it will be necessary to be vigilant, because a correction can occur at any time. Indeed, bearish signals are beginning to show on the daily scale. First there is the divergence of the RSI. Since January 16, the price of Ether (ETH) has been making higher and higher highs. As the highs of the RSI become lower and lower. This shows a lessening of the bullish pressure that is carrying the rally at the start of the year. Moreover, the $1636 level is a very critical resistance.
Currently, ether (ETH) is trading slightly above this hurdle after hovering around $1740. If the buyers give way, the price could retrace back to the $1241 support. However, taking a short position is rather risky since we are currently in the middle of a bull market. But if you want to take the risk, the current level above the Merge is an interesting entry point.
Admission: $1700 – 1636
Stop: $1750
Goal: $1241
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
