• 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.
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.
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.
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.
The current price action suggests that Ethereum may face some short-term corrections before continuing its uptrend again.