ETH has recently entered a correction phase and has been trading within a bearish wedge pattern for the past 2 days. However, it managed to break the falling support line in the early morning hours on the 1-hour chart.
Ethereum recently peaked at $3,581 after a strong bull run that started in mid-March, allowing it to recover from a price level below $2,600. Since then, it has registered a significant price correction and was trading at $3,250 at the time of this press. The 1 hour chart shows that the price correction has been limited to falling support and resistance lines forming a wedge pattern over the past 2 days.
ETH failed to break above the bearish resistance in the morning, thanks to bullish momentum taking over from the day’s low at USD 3,143. If the price action in the 1-day chart is still in the correction phase, the price should encounter resistance at the USD 3270 price level, which is a previously tested support zone.
The $3,300 price level is also a good candidate for a reversal as it aligns with the 0.27 Fibonacci level from the day’s high to the day’s low. Further correction to the bottom could bring the next bullish retracement near the USD 3,000 price level, which has historically been a support and resistance zone.
What can ETH’s technical indicators tell us about the price direction?
ETH’s 1-hour and 1-day charts show that the price correction started after the RSI and MFI reached oversold conditions. However, the bullish retracement currently taking place shows it was oversold on the 1-hour chart but recovered after reaching the mid-level of the RSI (50) on the 1-day chart
The MFI on the 1-day chart was still above 50 at the time of this press release, while registering inflows on the 1-day chart, a sign that it still favors the bullish recovery. On the on-chain side, the net transfer volume to/from exchanges decreased slightly from April 4 to April 5. It also rose significantly in the past 24 hours, reflecting ETH’s current price action.
This post Ethereum: What the Future Holds for ETH as It Breaks Out of a Falling Resistance
was published first on https://ambcrypto.com/ethereum-what-the-future-holds-for-eth-as-it-breaks-out-of-a-descending-resistance/