ETH Price Analysis: Consolidation Range Will Soon Launch ETH Above $2250

ETH Price Analysis: Consolidation Range Will Soon Launch ETH Above $2250

The last week saw a dramatic drop in the price of Ethereum (ETH), which pushed the altcoin below the $2165 support level. As a result, the altcoin registered a drop of 39% in a fortnight, and the recent drop is at risk of further downside. However, ETH price currently stuck in a retest phase should verify whether sellers are ready for another leg down.

key points:

• ETH chart shows a potential bearish crossover of 50 and 100 DMA
• Support fall of $2165 will push ETH price down to low $1800 support in June-July 2021
• Ethereum has an intraday trading volume of $27.3 billion, indicating a 3.2% gain

Source- tradingview

On May 11, Ethereum (ETH) price declined below the $2450 resistance and saw a steady correction towards the $1800 local support. Furthermore, the drop marked a 27% discount on Ether, where its price action is triggered.

Buyers attempted to bounce back from this support, but eventually, they accumulated upward selling pressure at $2,150. As a result, ETH price moved into a consolidation range with the final support at $1950.

However, an early bullish reversal from the support of the 50-period EMA poses a challenge to the 100-period EMA.

A bullish consolidation breakout will break free of trapped momentum and propel the price towards the next resistance level at $2250.

Conversely, a surrender buyer under a more extended selloff would trigger a minor pullback to $1950 before continuing the prevailing trend.

Technical Indicators-

A slope of the 100 EMA near the overhead resistance of $2150 would encourage sellers to push the altcoin back to lower support. However, a bullish rise will trigger a breakout of the 100 EMA and turn it into a viable support.

A narrow range and multiple crossovers between the VI+ and VI- slopes trigger a range bound rally. However, the current bullish alignment between these lines indicates that buyers are now leading the charge.

• Resistance Levels – $2165, and $2500
• Support Levels – $1700 and $1400

I am working in journalism since last 5 years. I follow Blockchain and Cryptocurrency since last 3 years. I have written on a variety of topics including fashion, beauty, entertainment and finance. raech out me at brian (at) coingape.com

The material presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication has no responsibility for your personal financial loss.