Ethereum paused the previous session gains and trades in a very narrow trading range. The price is accumulating inside the $1,595 and $1,655 trading zone. This happens as the bulls failed to carry forward Wednesday’s gain and face barricades around the higher level of the mentioned zone.
Despite, its lackluster performance, the Ethereum price is forming a consolidation with a bias toward a higher breakout. As of publication time, ETH/USD is exchanging hands at $1,614.07, down 0.91% for the day.
The second largest cryptocurrency trading volume rose 4% to $20,663,205,914 in the past 24 hours.
- Ethereum price treads water on Thursday following the previous day of gains.
- Critical resistance near $1,655 acts as an upside barricade and challenges bulls.
- Overall sentiment remains neutral to mildly bullish.
Ethereum price consolidates near higher levels
Ethereum’s price shows a miraculous recovery of more than 10% from yesterday’s low. However, as the day progresses the bulls lose steam and the price consolidates in a tight range. In the recent shift, $1,580-$1,550 is going to a crucial level to hold, as discount buying pressure occurs near the zone. The levels further trapped the short sellers. The probability of Ethereum’s bullish reversal is gaining momentum.
As per the four-hour chart, Ethereum formed an inverted “Head & Shoulder” pattern. The price after falling from $2,030 to $1,423, recovered fastly from its lows, & now even formed a reversal pattern.
According to this pattern, the price may face resistance from the Head and Shoulders neckline. This also coincides with the 200-Day exponential moving average at ($1,690).
If the price is able to break the mentioned level on the hourly chart, then we can expect a good bullish momentum of up to $1,800. And next Ethereum bulls would attempt to recapture the high of August 17 at $1,956.18.
Ethereum price on the hourly chart gave a breakout of a bullish “Flag & Pole” pattern but faces rejection near $1,650 ( previous swing high). According to this pattern, a break above the mentioned level, there is a higher probability of ETH testing $1,711 in just a couple of hours.
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The nearest support is $1,580, whereas the most immediate resistance is $1,650. There is a higher probability of the price to breaks its resistance.
On the other hand, a spike in the sell order could result in a breach of the $1,580 level. And the price can drop to $1,420.
Ethereum is bullish on multiple time frames. Above $1,650 closing on the hourly time frame, we can put a trade on the buy side.