The crypto market has witnessed a significant recovery over the past week, with Bitcoin registering an impressive 15.65% gain. However, altcoins are hinting at a possible short-term slowdown as investors begin to take profits. Ethereum, for instance, managed an 8.6% jump, but has faced increased resistance in recent days, suggesting a possible decline.
Examining Ethereum’s price daily chart, higher price rejection candles at $1,939 indicate strong supply pressure at this level. Presently, Ethereum is trading around $1,891 and could experience a pullback to retest the $1,800 mark. The intraday trading volume for Ether is $7.9 billion, representing a 28% gain.
Ethereum’s current resistance at $1,939 coincides with the struggle to break through the upper Bollinger Band, thereby forming a pattern resembling a tweezer top. This pattern hints at a potential market reversal. Interestingly, this retest could present an opportunity for buyers as the price seems poised for a rebound. The recent low trading volume backs the idea of a reversal following the retest.
For Ethereum to retain its bullish momentum, it must remain above the opening level of $1,792 from June 21, translating to a 5.43% increase. The crucial question now is whether Ethereum can reconquer the $2,000 mark. A pullback to the previously broken trendline may occur, giving buyers a chance to regroup before the recovery accelerates once more. If Ethereum holds above this support level, we might see a substantial surge of 13.8%, leading it to reach its 2023 peak of $2,138.
Analyzing key technical indicators, the Stochastic lines are currently in oversold territory, but they’re on the threshold of a reversal following a bearish crossover. The upper band of the Bollinger Bands, which sits around $1,939, contributes to the resistance and sets the stage for a potential bearish reversal.
While some investors may view the increased resistance and potential for a pullback with skepticism, others may view it as a golden opportunity to enter the market at a better price point. As always, prospective buyers and sellers should conduct thorough market research before making any decisions related to cryptocurrencies.
It’s worth noting that the content presented in this article may include the personal opinion of the author and is subject to market conditions. Always do your own market research before investing in cryptocurrencies. Neither the author nor the publication holds any responsibility for your personal financial loss.
Source: Coingape
