Ethereum price flashed recovery over the last 24 hours after it witnessed consolidation at the $1,800 price mark. Over the last week, ETH logged 20% appreciation. It has been a bullish week for the king altcoin. The last time the altcoin traded around this price level was almost two months ago.
It had failed to topple over the $1,900 zone and had retraced shortly after that. The robust support line for Ethereum price was at $1,600. Ethereum price could possibly witness a sharp change once the Ethereum Merge goes live next month.
The Merge is the transition from proof-of-work to proof-of-stake has been a highly anticipated event for the Ethereum community. This shift from proof-of-work shall diminish the altcoin’s power consumption by almost 99.5%. If the price of Ethereum manages to stay above the $1,900 mark for a substantial period of time, the coin will manage to touch the $2,000 mark price ceiling.
Ethereum Price Analysis: Four Hour Chart
ETH was trading at $1,918 at the time of writing. The coin had finally managed to move past the $1,800 price region. Ethereum price has to maintain momentum over the $1,900 mark in order to touch the $2,000 price mark.
Overhead resistance for the coin was at $1,970. Local support level for the coin was at $1,700 and then at $1,600 respectively. Incase ETH loses vigour and falls to the $1,600 mark, the inability to sustain at that price level can push the coin to $1,300. The amount of Ethereum traded in the last session was falling which meant that selling pressure was declining at the time of writing.
The altcoin’s technical outlook depicted bullishness on the four hour chart. Buying strength for Ethereum also increased as Ethereum price travelled upwards on its chart. The Relative Strength Index was parked above the 60-mark indicating that buyers dominated the market at press time.
If demand for ETH continues to rise, the altcoin might be overvalued leading to a possible price pullback. Ethereum price was above the 20-SMA line, which meant that buyers were driving the price momentum. The altcoin was also above the 50-SMA line which points towards the rising price of the asset.
ETH’s other important indicators also depicted positive price action. Moving Average Convergence Divergence is supposed to display that price momentum and reversals in the same. MACD witnessed a bullish crossover and flashed green signal bars above the half-line registering buy signal for the asset.
Directional Movement Index is responsible in determining the price direction of Ethereum. DMI was positive as the +DI line was above the -DI line. Average Directional Index (Red) was bordering the 40-mark which meant that the current price direction was gaining strength.
Featured image from UnSplash, chart from TradingView.com