How Long Will Ethereum’s Price Remain In a Sideways Trend?

For nearly a month, the Ethereum price has been consolidating in a fixed range stretched from $1680 and $1500. Earlier this consolidation was meant to stabilize the aggressive buying witnessed during the first three weeks of 2023. However, with the increasing bearishness in the market, the ETH price is experiencing a prolonged sideways trend indicating indecisiveness among market participants. However, an extended correction phase, the presence of a cup and handle pattern keep the Ethereum coin under buyers’ control

Key Points: 

• The $1680 breakout will release the Ethereum price from ongoing consolidation.
• For Ethereum price to stay bullish, the buyers need to defend the $1500 and $1400 support
• The intraday trading volume in Ether is $10.8 billion, indicating an 18% gain.

Source- Tradingview

The last three months’ price action in the Ethereum coin price shows the formation of a cup and handle pattern. In theory, the pattern is initiated with a u-shaped recovery which is a cup portion, followed by a minor consolidation phase called handle which validates the price sustainability above the reclaimed higher levels. 

Amid the recent sell-off in the crypto market, the Ethereum price reverted from the pattern’s neckline resistance of $1680. Thus, the altcoin tumbled 10% and revisited the local support of $1500. By the press time, the ETH price trades at $1524 and continues to hover above the $1500 support.

Furthermore, the formation of an inside day candle, which is a bullish reversal sign indicates a higher possibility of a bullish price reversal. This bullish reversal may prolong the sideways trend but also prepare buyers to rechallenge the $1680 neckline.

Also Read: CRYPTO TELEGRAM CHANNELS LIST 2023

In response to the aforementioned pattern, the ETH price should eventually breach the neckline resistance to signal the resumption of the recovery rally. The post-breakout rally may drive the price to the following targets: $1788, $1900, $2000, or $2300.

Technical Indicator

EMAs:  the 50-and-200-day EMA moving near the $1500 level will offer additional support to prevent further downfall.        

Vortex indicator: The increasing gap between the VI+(blue) and VI-(red) slope indicates the increasing selling pressure in the market.

Ethereum Coin Price Intraday Levels-

• Spot rate: $1524
• Trend: Bearish
• Volatility: Medium
• Resistance level- $1680 and $1788
• Support level- $1500 and $1420

The post How Long Will Ethereum’s Price Remain In a Sideways Trend? appeared first on CoinGape.

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