Ethereum Price Key Highlights
- Ethereum price had been on a downtrend but is now forming a reversal pattern, signaling that an uptrend might be in the cards.
- Price still has to test the neckline at the 0.00230 level and make an upside break before confirming the potential rally.
Ethereum price seems to be exhausted from its recent selloff, creating a double bottom after failing to break below the 0.00180 area.
Bitcoin Price Weakness
Ethereum price took advantage of the bitcoin selloff that took place during the FOMC statement, as the Fed’s decision to hike interest rates spurred demand for the US dollar against cryptocurrencies.
The 100 SMA just crossed below the longer-term 200 SMA though, so the path of least resistance might still be to the downside. Ethereum price might make another test of the 0.00180 level before regaining ground or possibly continuing its drop.
RSI has already reached the over bought level and has turned lower, suggesting that bears might still regain control of ethereum price action. However, stochastic is on the move up, which means that bulls might put up a good fight.
In that case, a break past the 0.00230 level could take ethereum price up to 0.00280 level, as the double bottom is approximately 0.00050 in height. The average directional index is moving below 50.0, though, so ranging market conditions might stay in play and keep ethereum price between 0.00180 to 0.00230.
There are no major market event risks lined up for the next few days, which supports the possibility of consolidation for ethereum price. Still, any profit-taking activity before the end of the year could spur strong moves in either direction.
Intraday support level – 0.00180
Intraday resistance level – 0.00230
Technical Indicators Settings:
- 100 SMA and 200 SMA
- Stochastic (14, 3, 3)
- RSI (9)
- ADX (14)
Charts from Kraken, courtesy of TradingView