Altcoin leader Ethereum (ETH)rallied, trying to avoid the overall dip in the crypto market on Sunday after showing signs of early recovery around $2,300. While the move will reassure short-term investors, ETH has traded below the demand zone of major investors and any sort of recovery will likely not be long in coming until more solid support is found.
While preparing the news, Ethereum price It was trading at $2,500, up 3% in the last 24 hours.
Ethereum Chart, Hourly Timeframe
Ethereum price struggled to move above $2,500 as ETH buyers gathered strength for a recovery at the 23.6% level ($2300). This move helped the bulls breathe a sigh of relief after eTH dropped nearly 30% from $3,275 to $2,300.
However, ETH still seems far from any bullish confidence. The hourly 50-SMA (yellow) and $2,600 are still forming resistance and it will be difficult to break through.
In fact, according to hourly ‘Bollinger Bands’, ETH had reached its maximum rise after trading at the upper end of the bands. As the bands narrow, low market volatility could lead to an accumulation phase of $2,500-2,300 after which the sellers are most likely to win the battle.
In case of another decline, the short-term support levels are located at $2,300 and $2,180, while in the case of a deeper sell-off, the $1,730 level will prevail.
Indicators
Short-term gains can be attributed directly to the hourly RSI that trades below 30. historically, ETHis seeing a rebound after trading at the extremes in the RSI as investors look for buy/sell opportunities. Once the RSI rises above 55, there is still a good chance for the index to extend into the overbought zone before reversing.
Measuring market momentum, the ‘Fabulous Oscillator’ favored buyers after three high-low flashes followed by a series of green bars. A move above the half line can even invite shorter-term gains through new buy orders.
As a result
As ETH’s near term recovers, the hourly 50 SMA (yellow) and $3,600 resistance was expected to stop any attempt at a prolonged recovery. Once a slight accumulation phase between $2,500-2,300 ends, ETH could head south until more reliable support is found.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.