ETH Technical Analysis: RSI Divergence Forecasts Price Jump
Table of contents
Key technical points:
Past Performance of ETH
ETH prices have been in a falling trend over the last couple of months but the situation has worsened over the past week. The supply dump during the weekend cuts the prices almost in half with a 45% downfall. However, the prices take a last bullish stand at $1050 and prepare a double bottom reversal.
Source- Tradingview
ETH Technical Analysis
ETH prices showcase an attempt to form a morning star pattern in the 4-hour chart, teasing a potential bullish reversal. Hence, traders can expect a green candle to form in the daily chart. The crucial SMAs – 50, 100, and 200-days maintain a bearish trend while falling representing a correction phase in motion. The RSI slope shows a bullish reversal from the oversold boundary with the 14-period SMA providing support. The uptrend shows a bullish divergence in the last two dips at $1050.
The MACD indicator shows the fast and slow line rising higher to reach the zero line and in doing so it avoids a bearish crossover. Moreover, the resurfacing bullish trend in positive histograms displays a rising buying pressure. In a nutshell, the ETH technical analysis predicts an uptrend continuation from the $1050 mark.
Upcoming Trend
ETH prices can successfully rise above the $1250 mark is the double bottom reversal at $1050 works. However, the fallout of $1050 will nullify the bullish thesis and result in a downfall to $900.
Resistance Levels: $1250 and $1350
Support Levels: $1050 and $900