ETH Price Analysis: Will $1730 Resistance Trigger Another Correction?

A U-shaped recovery has surged the Ethereum(ETH) price to $1730 resistance. However, the coin buyers have been struggling to surpass this resistance over the past three days, indicating weakness in bullish momentum. A possible correction would allow potential buyers to grab ether at a discounted price.

Key points: 

• A bearish reversal from $1730 could tumble the ETH price by 65 before hitting immediate support.
• The daily candlestick closing above $1730 would invalidate the bearish thesis
• The intraday trading volume in Ethereum is $13.2 Billion, indicating a 20% loss

Source- Tradingview

On July 16th, ETH buyers escaped a four-week consolidation with a bullish breakout from the $1260 resistance level. The resulting run-up soared the altcoin by 20% as it reached the $1600 psychological level.

However, this overhead resistance triggers a minor retracement which retests the breached resistance trendline. With this long-coming trendline flipped into suitable support and the positive sentiment spread across the crypto after the US Fed announced the 75 pts interest hike, the ETH price suddenly recovered to the $1730 mark.

However, an evening star candle pattern with a long wick rejection attached to them indicates the buyers are exhausted. Thus, if the selling pressure persists, a retracement to $1600 or $14000 is plausible to replenish the bullish momentum.

On the other hand, if the ETH price gives a daily candle closing above the $1730 mark, the buyers would obtain a viable footing to extend the recovery rally 10.8% higher to $1900.

Technical indicator-

RSI: while the price action makes a new higher high, the daily RSI slope fails to surpass its previous high, suggesting weakness in underlying bullishness. This negative divergence bolsters the correction theory mentioned above.

EMAs: the 100-day EMA moving near the $1730 mark puts additional selling pressure on ETH price. On the flipped side, a bullish crossover between the 20-and-50 EMAs attracted more buyers in the market,

• Resistance level- $1730, and $1900
• Support levels- $1600 and $1400