First Support for ETH in Case of Short-Term Correction: Ethereum Price Analysis

• Ethereum’s uptrend has been halted after reaching the major resistance at $1.7K.
• There is a substantial bearish divergence between the price and the RSI indicator on the daily timeframe.
• The $1.3K minor support level is likely to be Ethereum’s next stop in case of rejection from $1.7K.

Ethereum Price Analysis

Ethereum’s uptrend has been halted after reaching the major resistance at $1.7K, leading to a short-term correction that many expect.

Technical Analysis

On the daily chart, Ethereum has surpassed the 200-day moving average and the multi-month channel’s upper trendline due to recent bullish market movement. However, there is a substantial bearish divergence between the price and RSI indicator which could lead to volatility in upcoming days.

Static Levels

There are three critical static levels for Ethereum on the daily chart; $1.7K major resistance level, $1.3K minor support level, and $1K major support level.

4-Hour Chart

The price action appears bearish on 4-hour timeframe as an ascending Head and Shoulder pattern has formed after reaching a vital resistance region. If cryptocurrency cascades below neckline around $1.5K, it will suggest reversal.