The ongoing recovery rally in Ethereum price seems to have hit a significant roadblock at $1926, with the coin struggling to surpass this barrier after three failed attempts in the last four days. This signals that sellers might be actively defending this level; however, buyers are not backing down either, limiting the downward slide to $1867. Consequently, these two price levels have created a range that may have a considerable impact on the near-future price of Ethereum.
Of particular interest, Ethereum’s fear and greed index presently stands at 59%, reflecting positive market sentiment. Additionally, the intraday trading volume for Ether is $5.7 billion, a 57.5% increase. In the context of the 4-hour timeframe, Ethereum’s price maintains a narrow range between $1926 and $1867. While traders’ uncertainty is evident in the repeated retesting of both levels, buyers remain optimistic by preventing a significant drop below the $1867 mark.
Despite the overhead supply, the overall market trend leans toward optimism, increasing the likelihood of breaking the $1926 resistance level to continue Ethereum’s recovery. Success in overcoming this barrier could restore bullish momentum and push the price toward the immediate resistance of $2020.
It’s essential to consider that the ongoing consolidation in Ethereum’s price could be due to profit-booking from short-term traders, further contributing to the underlying uptrend sentiment. New traders seeking to avoid getting caught in the whirlwind might want to wait for a decisive breakout beyond the range to gauge the potential price movement.
It’s worth noting, however, that a possible drop below $1867 might lead to a plunge in Ethereum’s price back to the recently breached trendline of $1800. Key indicators to watch include the Relative Strength Index (RSI) on the 4-hour chart, which displays a falling slope that signifies an increasing supply zone and a potential $1867 breakout. Additionally, a bullish crossover between the 100 and 200 Exponential Moving Averages (EMAs) near the $1800 support level could reinforce the strength of this price floor.
To sum up, Ethereum traders are currently treading cautiously between the narrow price range of $1926 and $1867. It appears that the overall market sentiment skews toward optimism, but new traders may want to await a definitive breakout before committing to any substantial investments. Monitoring essential indicators like the RSI and EMAs will help traders navigate these uncertain waters, ensuring more informed decision-making in the ever-evolving crypto landscape.
Source: Coingape
