The ongoing price correction in Ethereum price has showcased a significant demand pressure around the $1600 mark. While falling prices were a concern, it has surprisingly turned sideways for the last 3 weeks, using the support of an ascending trendline. However, is this support enough to set a new recovery in ETH price?
Also Read: Ethereum Whales Added Over $400 Million In ETH, Will Price Action follow?
Support Trendline Bolsters Buyers for Bollinger
- A bearish breakdown from the support trendline will push the ETH price by 8% down.
- Lower price rejection around $1600 reflects rising buying pressure.
- The intraday trading volume in Ether is $5.6 Billion, indicating a 7.8% gain.
Source- Tradingview
Diving into the daily time frame chart, it’s evident that the Ethereum price is being pulled in two directions by converging trend lines. On one hand, there’s a stubborn resistance trend line that has deflected the price downwards on two separate occasions. On the other, a trusty support trendline has come to buyers’ rescue multiple times, ensuring the coin doesn’t free-fall.
At the moment, the ETH price is trading at $1631. While there has been an intraday loss of 1%, it’s knocking on the door of the lower trendline once again. Interestingly, today’s daily candle shows signs of price rejection at the lower end.
This suggests that buyers are still in the game, possibly gearing up for another upward push. If this buying momentum continues, we could see a potential surge of about 4%, with Ether aiming for the upper trend line, approximately around $1680.
However, for a more concrete sign of a bullish recovery, it’s imperative for the coin to break past the aforementioned upper trendline.
Is ETH Price Heading to $1500?
The Ethereum price will remain sideways until the two above-mentioned trendlines are intact. Taking a pessimistic approach, if the ETH price ends up breaking below the lower trend line – and with a daily candle close beneath it – the market supply pressure will intensify. Such a move could pave the way for an extended correction phase and plunge the price to the $1,500 support level, marking a drop of around 8-10%.
- Vortex Indicator: A potential bullish crossover between the VI+(blue) and VI-(orange) will increase the buying pressure in the market
- Bollinger Band: The lower band of Bollinger band indicator aligned with the ascending trendline could offer additional support.
