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After rebounding off support at $2,584, the price of Ethereum has been gradually rising. Within a day, the price increased by 9.36 percent, and ETH was trading at $2,784.
As Ethereum moves through this price range, there may be a brief period of consolidation before resuming a negative trend in the short term market.
Ethereum hourly chart
The chart above shows that the $2,584-level was tried twice and resulted in a similar type of break out. Because the price has been trading near to resistance around $2,792, it may remain at this level until selling pressure rises up.
As a result, the value of ETH may lose support and fall to $2,700.
With the price of Ethereum climbing over the last day, the market has taken a positive turn. The 50 moving average was below the price sticks, indicating an upward going market. However, because ETH was replicating a past trend, a price drop was also on the horizon.
The Visible Range indication indicated that there was no active trading at the current price level. If the price breaks through support, it might fall below the $2,700 level, where trading activity was stronger. In addition, the signal indicated that this level was a point of control in the present period.
Interestingly, the Directional Movement Index was also indicating that the +DI was on the verge of crossing below the -DI, which might increase market bearishness. If this were to occur, it would indicate an increase in negative pressure in the ETH market, perhaps leading to a sell-off.
Take Profit: $2,705.66
Risk and Reward: 1.18
The Ethereum market is now optimistic, but there are indicators of a trend reversal brewing. With the asset trading near support around $2,763, a break below this level might start a sell-off, and the price might fall to the next trading area at $2,700.