Ethereum price may break out of a rectangle pattern and reach $2000.
Over the past few days, the Ethereum price has remained relatively stable, with minor gains seen on the daily chart. Meanwhile, Bitcoin’s indecisiveness has resulted in slower movement for altcoins.
Despite this, Ethereum has risen on its chart, although the technical outlook suggests low demand and accumulation due to reduced buying strength.
Despite the fall in buying strength, buyers still hold an advantage over sellers in the market. However, if Ethereum fails to move above its immediate resistance, the coin may retrace on its chart, potentially falling below its local support level and activating bearish sentiment.
Investors are now looking ahead to the release of US CPI data, which analysts predict will significantly impact the market in the coming weeks. The market capitalization of Ethereum has fallen slightly, indicating slow demand for the altcoin.
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Ethereum price may break out of a rectangle pattern and reach $2000. Ethereum Price Analysis: One-Day Chart
At the time of writing, the price of ETH was $1,870. Based on the daily chart, there is a possibility of a breakout as the price approaches the upper boundary of a rectangle pattern. The crucial overhead resistance for Ethereum is at $1,880. If the price manages to surpass this level, it could potentially exceed $1,900 and ultimately reach $2,000. However, it is important for ETH to surpass the $1,880 mark in the upcoming trading sessions. On the downside, there is a local support level at $1,820. A dip below this point could lead to a decline towards $1,770. Ethereum price may break out of a rectangle pattern and reach $2000.
The Ethereum market has been facing challenges in terms of demand on the daily chart due to its inability to surpass the $1,900 level. This has led to a negative impact on investor confidence. The Relative Strength Index (RSI) is currently positive, indicating a moderate level of demand. However, the 20-Simple Moving Average line suggests a decline in buying strength, which implies that buyers are gradually losing control of the price momentum.
ETH has seen a decrease in buying power and capital inflows, indicating a decline in investor interest. This is supported by the Chaikin Money Flow indicator. However, the Moving Average Convergence Divergence (MACD) has formed declining red histograms, which could suggest a potential breakout in the upcoming trading sessions. The MACD is a reliable tool for identifying price momentum and trend changes. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.