The crypto market is witnessing high volatility this week as the market participants remain uncertain regarding the updates of Bitcoin spot ETH. As a result, the ETH price recovery from $1530 support has started experiencing notable supply pressure around the $1600 mark. Will the failed excitement lead to further correction in Ethereum?
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Should you Buy at $1500 Support?
- A bullish divergence in the momentum indicator RSI indicates the accelerating buying pressure at the $1500 mark
- An upside breakout from the $1745 resistance would set a new recovery cycle in ETH
- The intraday trading volume in Ether is $4.6 Billion, indicating a 17% loss.
Source- Tradingview
Over the last two months, the Ethereum price has been largely confined to a sideways trend, bounded by $1745 and $1630. Despite the coin making noteworthy price swings within this range, there has been no decisive move in either direction.
The attempted recovery that began on October 13th, originating from the range support at $1533, faced immediate supply pressure around $1600, stopping the coin’s upward trajectory mid-way. This stalled recovery points towards a likely retest of the $1530 support level and potentially even the lower trendlines of a rising wedge pattern that has been leading ETH’s price movement for the past 16 months.
Thus, the ETH price potential retest to the lower trendline could increase the demand pressure needed by buyers to escape the current consolidation. An upside breakout from the overhead resistance of $1745 would give an additional confirmation for traders to go bullish.
Is ETH Price At Risk Of Further Fall?
In the daily time frame, the ETH price action is governed by the rising wedge formation. As long as the two trendlines defining this setup remain intact, this coin may sustain its upward trajectory, serving as a dynamic support zone for buyers during market corrections. However, if we consider a more pessimistic scenario, a breakdown below this lower boundary could spell the onset of a major correction in the Ethereum coin.
- Relative Strength Index. The daily RSI slope rise reflects the buyers’ increasing accumulation at the $1500 mark.
- Bollinger Band. The flattish upper and lower boundary of the Bollinger Band indicator accentuates the sideways trend in this altcoin.
