Ethereum Price Key Highlights
- Ethereum price has been trending higher on its 1-hour time frame, cruising inside an ascending channel connecting the latest highs and lows of price action since last week.
- Price made its way to the top of the channel and resistance at the 0.00300 mark held as expected, putting it on track toward the support around 0.00270.
Ethereum price could be due for a bounce off the channel support since this is in line with the ongoing uptrend.
Bullish Divergence Seen
Technical indicators are also hinting at a return in buying pressure, as stochastic is already moving out of the oversold region. In addition, a bullish divergence can be seen since ethereum price made higher lows while stochastic made lower lows.
At the moment, ethereum price is finding some support at the mid-channel area of interest around 0.00280 and might be due for an early bounce back to the top if bulls are eager to charge.
A larger pullback to the moving averages might still be in order, as these indicators also held as dynamic support levels. In addition, the 100 SMA is above the 200 SMA so the uptrend is likely to carry on.
However, RSI is heading south, which suggests that ethereum price might follow suit. If this indicator reaches the oversold area right around the time price tests the channel support, a bounce is still in the cards.
Meanwhile, the average directional index is still hovering below the 50.0 level, reflecting ranging market conditions. This indicates that ethereum price could stay inside its ascending channel for the time being.
Still, pending any major market catalysts, a breakout in either direction might also be possible. A downside break could set off a short-term downtrend for ethereum price while an upside break could spur a stronger climb.
Intraday support level – 0.00270
Intraday resistance level – 0.00300
Technical Indicators Settings:
- 100 SMA and 200 SMA
- RSI (14)
- Stochastic (8, 3, 3)
- ADX (14, 4)
Charts from Kraken, courtesy of TradingView