After a period of correction, the price of Ethereum is starting to show signs of an uptick on its chart. The altcoin managed to breach a crucial recovery area, suggesting that the bulls are trying to regain control.
Over the past 24 hours, Ethereum has seen a modest 0.2% increase in price. However, on the weekly chart, it succeeded in reversing most of its previous losses.
However, it is important to note that Ethereum is still trading near a vital support line, and another push from the bears could send the altcoin below its immediate support level.
Bitcoin’s volatility had a similar effect on most altcoins, causing them to show comparable price movements on their respective charts.
Related Reading: Bullish Sign: Bitcoin Realized Profit and Loss Drops to October 2020 Levels
While Ethereum is currently showing positive momentum, it is necessary to increase the buying power in order to sustain the bullish trend during the following trading sessions. Technically, the bears still retain some control, while the bulls continue to face challenges.
Demand and accumulation levels have remained relatively low on the chart. Furthermore, the Ethereum market cap is declining, which indicates a decrease in buying power based on the daily chart.
Ethereum price analysis: intraday chart
At the time of writing, Ethereum (ETH) is trading at $1,730, which is showing signs of recovery over the past few days. The altcoin remained near a major support line at $1,717. On the upside, there was general resistance at $1,770. If the buying power increases, Ethereum could aim towards the $1,740 level.
However, for the bulls to regain control, a move above $1,770 would be beneficial. Conversely, if the current price level suffers a decline, ETH could drop below the $1717 support and it is likely to trade around $1710.
Unfortunately, ETH volume was in the red in the last session, indicating more selling pressure in the market.
Technical Analysis
After visiting the oversold zone, Ethereum made attempts to reverse the situation. However, the demand for ETH has remained low. The Relative Strength Index (RSI) is indicating increasing selling strength as it remains below the half-line.
Moreover, ETH price moved below the 20 simple moving average (SMA) line, which indicated that sellers were driving the price momentum in the market.
In line with other technical indicators, Ethereum is showing selling signals on the chart. The Moving Average Convergence Divergence (MACD) showed a red signal indicating bearish price momentum.
Although it is worth noting that the signals were going down, which indicates a possible shift in the price in the upcoming trading sessions.
On the other hand, Chaikin Fund Flow (CMF) indicated a decrease in capital inflows as it remained below half of the line. This decrease in buying interest in ETH could contribute to the downside.
Featured image from Unsplash, charts from TradingView.com
