Ethereum Price Key Highlights
- Ethereum price has been trending higher on the short-term time frames, as the rising trend line support is still holding.
- Price hit a major area of interest visible on the longer-term charts, triggering a pullback to the trend line.
Ethereum price could be in for a short-term downtrend if it breaks below the trend line and completes a head and shoulders pattern.
Watch 0.00300 Closely
The neckline of the head and shoulders reversal pattern lines up with the trend line support around the 0.00300 level, with a downside break likely to confirm that further losses are possible. Stochastic is already indicating overbought conditions while RSI is turning lower, both indicating that sellers are getting stronger.
The 100 SMA is above the 200 SMA, which suggests that the uptrend could carry on. If so, ethereum price could recover back to the previous highs at 0.00400. Stronger bullish momentum could even spur an upside break past that psychological ceiling.
The 100 SMA appears to be holding as a dynamic resistance area, though, potentially keeping gains in check and leading to another test of the trend line. A head and shoulders pattern followed by a neckline break could be followed by a drop to 0.00200.
Intraday support level – 0.00300
Intraday resistance level – 0.00400
Charts from Kraken TradingView