Technical Analysis of Ethereum: ETH Faces Pivotal Resistance

As of September 9, 2024, Ethereum’s price is at $2,309, struggling to break free from a strong downtrend observed across multiple time frames.

The market shows uncertainty, with oscillators providing mixed signals and moving averages indicating a bearish outlook. While there are signs of accumulation near current support levels, the broader market environment suggests caution for traders.

Ethereum Technical Analysis: ETH Faces Pivotal Resistance

Hourly Chart Analysis

On the 1-hour chart, Ethereum is trading within a range, fluctuating between $2,240 and $2,340.

Support is firmly held at $2,240, while resistance is at $2,338. Recent volume spikes indicate a lack of sustained buying pressure following the drop to $2,240, showing indecision among traders.

As the market remains in consolidation, the next significant move for Ethereum likely depends on a breakout from this range.

Four-Hour Chart Analysis

On the 4-hour chart, Ethereum shows a slight recovery after hitting a low of $2,149.

Minor support is established at $2,240, with resistance levels at $2,338 and $2,450. The drop from $2,500 to $2,200 saw a significant sell-off, but post-sell-off volume has decreased, indicating weak bullish momentum.

Traders might consider waiting for a decisive move above $2,350 or preparing for further decline if the price breaks below $2,300.

Daily Chart Analysis

The daily chart reveals a clearer picture of Ethereum’s prolonged downtrend. The market has consistently seen lower highs and lows, with support around $2,149 and resistance near $2,823.

Significant volume during the recent sell-off suggests possible capitulation, but the absence of a strong reversal pattern indicates ongoing vulnerability. Cautious entry around $2,200-$2,300 could be viable, but risk management is crucial.

Indicators and Signals

Oscillators: Provide mixed signals. The Relative Strength Index (RSI) at 37 is neutral, while the Commodity Channel Index (CCI) and momentum suggest a potential buying signal, indicating possible bullish pressure.

However, the Moving Average Convergence Divergence (MACD) at -121.2 points to continued bearish momentum, and most moving averages (MAs) remain in sell territory, reinforcing the overall downtrend.

Verdict

Bullish Outlook: Ethereum shows potential for recovery if it can break above the $2,350 resistance level. Oscillators like the CCI and momentum indicate buying pressure, suggesting that a bounce from the $2,200-$2,300 support zone could lead to short-term gains.

A breakout above key resistance levels could attract more buyers, potentially reversing the current bearish trend.

Bearish Outlook: The dominance of bearish signals from moving averages and the MACD suggests that Ethereum may continue its downward trajectory. Failure to hold above the $2,300 support level could lead to further declines, with $2,149 as the next key level to watch.

The lack of strong buying pressure and weak volume recovery indicate that downside risk remains significant in the short term.


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