Supply Pressure At Monthly Resistance Puts Ethereum Price Under Correction Threat; Back To $1500?

The Ethereum price’s ongoing recovery takes a halt at the $1720 resistance. This horizontal barrier aligned with the resistance trendline of the megaphone pattern indicates a high supply zone which could trigger a new correction for ETH. Will this altcoin go back to $1500 or reach $2000 in the coming weeks?

Key Points: 

• Today’s daily candle shows a long higher price rejection indicating that Ethereum price faces high supply pressure at $1780
• The exponential moving average indicator(20, 50, 100 , and 200) moving a lateral indicates a sideways trend for ETH
• The intraday trading volume in Ether is $11 billion, indicating a 6.2% gain.

Source- Tradingview

An upright rally in the Ethereum price recorded 25% growth since last week. This bullish reversal reflected the bull cycle within the megaphone pattern and pushed the prices to a combined resistance of $1780 peak and the overhead trendline.

Over the past four days, the daily chart showed higher price rejection candles at the aforementioned resistances indicating the sellers are actively defending this level. Such rejection signs at the megaphone pattern’s resistance trendline project a significant possibility for price reversal.

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However, with an overall market reflecting a recovery sentiment, the coin holders can wait until the Ethereum price holds above $1650. A breakdown below above mentioned support will accelerate the selling pressure and may bolster a direction fall.

Conversely, if the coin price shows suitability above $1650, the buyers can attempt to breach the above trendline and prolong a bullish rally.

Technical Indicator

Bolinder Band: the coin price retesting the upper band of the Bollinger band indicators suggests a minor price consolidation above $1650 is plausible.

RSI: The daily RSI slope rising in the bullish territory indicates the market sentiment is in favor for a prolonged rally.

Ethereum Coin Price Intraday Levels-

• Spot rate: $1722
• Trend: Bullish
• Volatility: Medium
• Resistance level- $1780 and $2000
• Support level- $1650 and $1550