Ethereum (ETH) technical analysis:
Trade setup: After reaching $2,150 on a sharp run up, price was overbought with RSI > 70 and traders began to take profits, triggering liquidations of leveraged long positions. Now it’s consolidating in a Bullish Flag pattern, which is a continuation pattern, meaning that it typically resolves in a bullish breakout in the direction of existing Uptrend.
Pattern: Bullish Flag pattern. Short term small rectangle trading range between diagonal parallel lines. It moves counter to the prevailing price trend observed in a longer time frame on a price chart. It forms typically following a sharp advance and often indicates a small change in direction (or areas of consolidation) before the previous trend resumes. Flag pattern is among the most reliable continuation patterns that traders use because it generates a setup for entering an existing trend that is ready to continue. Trade is initiated on a breakout, if it is in the same direction as the prevailing trend. Also, with bullish flag patterns, traders prefer a breakout with an increase in volume but it isn’t a must.
Trend: Neutral on Medium-Term basis and Uptrend on Short- and Long-Term basis.
Momentum is Mixed as MACD Line is above MACD Signal Line (Bullish) but RSI ~ 50 (Neutral).
Support and Resistance: Nearest Support Zone is $1,800, then $1,700, and $1,400. The nearest Resistance Zone is $2,000 (previous support), then $2,150.
Trade setup: After reaching $2,150 on a sharp run up, price was overbought with RSI > 70 and traders began to take profits, triggering liquidations of leveraged long positions. Now it’s consolidating in a Bullish Flag pattern, which is a continuation pattern, meaning that it typically resolves in a bullish breakout in the direction of existing Uptrend.
Pattern: Bullish Flag pattern. Short term small rectangle trading range between diagonal parallel lines. It moves counter to the prevailing price trend observed in a longer time frame on a price chart. It forms typically following a sharp advance and often indicates a small change in direction (or areas of consolidation) before the previous trend resumes. Flag pattern is among the most reliable continuation patterns that traders use because it generates a setup for entering an existing trend that is ready to continue. Trade is initiated on a breakout, if it is in the same direction as the prevailing trend. Also, with bullish flag patterns, traders prefer a breakout with an increase in volume but it isn’t a must.
Trend: Neutral on Medium-Term basis and Uptrend on Short- and Long-Term basis.
Momentum is Mixed as MACD Line is above MACD Signal Line (Bullish) but RSI ~ 50 (Neutral).
Support and Resistance: Nearest Support Zone is $1,800, then $1,700, and $1,400. The nearest Resistance Zone is $2,000 (previous support), then $2,150.