The Ethereum price recently breached the monthly support of $1827 on May 11th, causing many to speculate that momentum selling could lead to a more extended correction. Fast forward five days, and the coin’s price continues to move sideways, which may indicate a lack of commitment from sellers. Furthermore, the ongoing consolidation period hovers above the support trendline of the wedge pattern, providing buyers with a solid footing to potentially trigger a bullish reversal.
Despite this, the Ethereum Fear and Greed index currently stands at 49%, showcasing a neutral sentiment among traders. If a breakout above $1827 occurs, it could set the Ethereum price on a 5% rise this week. The coin’s intraday trading volume is $5.86 billion, signifying a 6.3% loss.
Traders should note that the ongoing correction phase in the Ethereum price is primarily driven by a falling wedge pattern on the daily time frame chart. As of now, the ETH/USDT trades at $1817, with the coin trying to gain support from the pattern’s trendline. If buying momentum surges, the coin’s price could break through the overhead resistance, effectively turning the May 11th breakdown into a bear trap. A daily candle closing above $1817 could boost Ethereum’s market value by 5%, hitting the resistance trendline of the wedge pattern.
However, if the pattern’s level remains intact, Ethereum’s price could be subjected to a longer correction. As a result, traders seeking long-entry opportunities should await a decisive breakout above the overhead trendline before taking any action.
Technical indicators, such as the Moving Average Convergence Divergence (MACD), show the blue and orange lines becoming flat, increasing the likelihood of the price reversal mentioned earlier. Additionally, with Ethereum’s price trading above the 100-and-200-day Exponential Moving Averages (EMAs), the long-term sentiment remains bullish.
The Ethereum coin’s intraday price levels are as follows:
– Spot rate: $1814
– Trend: Bearish
– Volatility: Medium
– Resistance level: $1830 and $1920
– Support level: $1700 and $1600
The content provided here may encompass the author’s personal opinion and is contingent upon market conditions. Before investing in cryptocurrencies, conduct thorough market research. The author or the publication holds no responsibility for any personal financial loss.
Source: Coingape
