Since reaching the top at $164, price dropped sharply to the 0.5 fib line at $134. We can see that price has been moving in a potential descending wedge for the past 7 days. Since the drop, price has struggled to break out of the 0.382 fib line near $144. It has made multiple double tops, followed by a sharp drop.
- There is major resistance near $168.
- There is a major support area near $124.
- Price is currently trading at the 0.5 fib line
- Price is trading inside a short-term descending wedge.
Ethereum Price Analysis – ETH/USD – 2-Hours Chart
A look at the 2-hour chart for Ethereum shows that price reached a top of $168 before sharply dropping. The three-wave movement from $103 took 17 days and 14 hours. The major resistance area is found near $168 Price dropped all the way to the 0.5 fib line of the entire drop at $135, where it is currently trading. We can see that since then (for the past 7 days) price has been moving in a downward channel resembling a descending wedge. The major support area found in the most recent trading range near $124.
As for the indicators, there is a slight bullish divergence in the RSI, which is currently trading at38, indicating almost oversold conditions. There is a more pronounced bullish divergence in the MACD, who has made a bullish cross and is almost positive. Price is trading below both the short and long-term moving averages, which have made a bearish cross (black arrow). Price is facing very close resistance from the 21-period MA.
Ethereum Price Analysis – ETH/USD – 15 minutes Chart
A look at the 15-minutes chart shows that price has struggled to break out above $144, corresponding with the 0.286 fib line. Afterward, the price started to trade inside a descending wedge, a movement that has lasted for 7 days. The resistance and the support lines at the current time are at $140 and $132. A common occurrence has been the creation of double top patterns (bearish reversal) combined with a bearish divergence in the RSI, followed by a sharp drop. This has occurred four times so far. If price breaks out of the wedge, there will be heavy resistance at the 0.5 fib line at $151. It is worth noting that there has been a higher volume on bearish than on bullish candles. The RSI is at 38, indicating neither overbought nor oversold conditions.