The crypto market has been exhibiting an impressive recovery since last week, with market sentiment appearing optimistic as a result of the potential spot Bitcoin ETF in the US. Major altcoins are surging in line with the pioneer cryptocurrencies, entering a new phase of the recovery cycle. For instance, Ethereum, the second largest crypto asset by market capitalization, has seen an 18.1% price growth after bouncing off from a monthly low of $1,627. The question on everyone’s mind is whether the Ethereum price will continue to rise or if we will witness a correction in the near future.
According to Ethereum’s price daily chart, there is strong supply pressure at the $1,926 level, as evident by higher price rejection candles. At $1,879, Ethereum’s price could experience a 3% pullback to retest the downsloping trendline. The intraday trading volume in Ether has had a substantial 43.5% gain, reaching $6.59 Billion.
The daily time frame chart showcases a downsloping resistance trendline that has guided the last correction phase in Ethereum’s price. However, buyers have recently managed to break through this dynamic resistance on June 21st, backed by a significant surge in trading volume. In the early hours of June 22nd, the coin price demonstrated a follow-up to the bullish breakout but was unable to surpass the $1,926 resistance.
This long-rejection candle at the $1,926 resistance level is indicative of the overhead supply pressure that could potentially reverse the price trend. This potential reversal may provide an opportunity for traders to retest breached resistance and support levels before moving forward. If the Ethereum price is able to sustain its position above the flipped support, buyers could potentially drive the coin’s market value 13.8% higher, reaching the 2023 high of $2,138.
When examining other market indicators, the Average Directional Index shows an upswing in the daily slope amidst the recent growth, signifying that buyers have gained strength for a robust recovery. Additionally, the upper band of the Bollinger Band indicator moves sideways at the $1,926 level, reinforcing resistance and the possibility of a bearish reversal.
It is important to note that the presented content represents personal opinions and is subject to market conditions. Remember to perform thorough market research before investing in cryptocurrencies, as the author or publication does not assume responsibility for any personal financial loss.
Source: Coingape
