Chart by TradingView
Key Support levels: $3,000, $2,805
Key Resistance levels: $3,400, $3,750
ETH’s price action has been somewhat reserved once it reached $3,000 without a strong conviction to move higher. However, despite the hesitation from buyers, the cryptocurrency continued to go higher reaching $3,235 today on Bitstamp. The $3,000 level turned into support, and the next key resistance is found at $3,400.
Trading Volume: While the price went up, the volume went down. If the overall market turns bearish or enters a pullback, ETH appears weak and can fall under $3,000 again.
RSI: The daily RSI has moved to 60 points, placing it on the bullish side. The buyers need to sustain this level, otherwise, ETH is vulnerable to selling pressure.
MACD: While the daily MACD is bullish, the histogram confirms a loss of momentum. If the histogram makes a lower high, then it is best to take that as a warning. This can quickly be erased if buyers step in.
The current bias for ETH is bullish. However, ETH appears weak with decreasing volume and is losing momentum. The resistance at $3,400 may be hard to pass for that reason.
Even if ETH is above $3,000, this latest price action can quickly reverse if selling pressure intensifies. The loss of momentum and low volume is a concern. Nevertheless, the current market favors bulls, and ETH can benefit from that. Should the price continue to go up from here, the next key resistance is found at $3,400.
