After a period of correction, the Ethereum price begins to show signs of appreciation on the chart. The altcoin has managed to break past a crucial recovery area, indicating that the bulls are making an effort to regain control.
In the past 24 hours, Ethereum has experienced a modest 0.2% price increase. But on the weekly chart, it has successfully reversed 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 cause the altcoin to potentially drop below the immediate support level.
Bitcoin volatility has had a similar impact on most altcoins, causing them to show similar price movements on their respective charts.
Related reading: Bullish signal: Bitcoin realized gains and losses fall to October 2020 levels
While Ethereum is currently showing positive momentum, it is critical that purchasing power increases to maintain the uptrend during the next trading sessions. From a technical point of view, the bears still maintain some control, while the bulls continue to face challenges.
Demand and accumulation levels have remained relatively low on the chart. In addition, Ethereum’s market cap has declined, indicating a decrease in purchasing power based on the one-day chart.
Ethereum Price Analysis: One Day Chart
At the time of writing, Ethereum (ETH) was trading at USD 1,730, which has shown signs of a recovery in recent days. The altcoin remained near a significant $1,717 support line. On the upside, there was overhead resistance at $1,770. If buying power strengthens, Ethereum could aim for 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 falls, ETH could drop below the USD 1,717 support and potentially trade around USD 1,710.
Unfortunately, ETH’s trading volume was in the red in the last session, indicating more selling pressure in the market.
Technical analysis
After visiting the oversold zone, Ethereum has made efforts to reverse the situation. However, demand for ETH has remained low. The Relative Strength Index (RSI) indicates increased selling power as it remains below the half line.
In addition, the price of ETH has moved below the 20-Simple Moving Average (SMA) line, suggesting that sellers have boosted price momentum in the market.
In line with other technical indicators, Ethereum showed sell signals on the chart. The Moving Average Convergence Divergence (MACD) showed a red signal, indicating bearish price momentum.
However, it is worth noting that the signals decreased, indicating a possible reversal in the price in the coming trading sessions.
On the other hand, the Chaikin Money Flow (CMF) indicated a fall in capital inflows as it remained below the half line. This decline in buying interest for ETH may further add to bearish sentiment.
Featured image from Unsplash, charts from TradingView.com
