MEXCETH Price Analysis: Inverted H & S Pattern Signals Bullish Reversal; Is Correction Over?
The Ethereum (ETH) price recovery rally turned down from the $3300 psychological level. However, the buyers maintained stiff support at the $2800 mark, indicating the traders are accumulating at this dip. The ETH/USD price chart also shows an inverted head and shoulder pattern, offering a bullish opportunity for traders.
Key technical points:
- The daily-MACD indicator is poised to cross above the neutral zone
- The intraday trading volume in ETH/USD is $11.6 Billion, indicating a 16.27% fall.
Re-accumulation From Institutional Investors Spikes Ethereum Fund Inflows
As per the recent report from @Coinshareco, Digital assets investment products witnessed inflows totaling US$75m last week. Moreover, Ethereum has finally broken its 9-week streak of outflows with inflows totaling US$21m. This indicates the institutional investor’s interest has pulled back to Ethereum, driving them to accumulate ETH.
ETH/USD: Daily Time Frame Chart
Source- Tradingview
Over the last three weeks, the ETH recovery rally registered a 36% gain from $2400 support. However, the buyers faced supply pressure at the $3300 psychological level, triggering a minor retracement of 14%. The shared support of $2800 and 20-DMA prevented further downfall and pushed the altcoin upward.
The technical chart shows the formation of an inverted H&S pattern in the daily time frame. A bullish breakout from the overhead resistance trendline would complete this pattern, indicating a better possibility for trend reversal.
The sustaining buying would surge the coin price to the near resistance of $3645, which stands as key resistance for a bullish rally.
On a contrary note, if sellers pulled the altcoin from the resistance trendline, the coin price would retest $2800 support, along with the threat to sink to $2400.
Technical indicator
The ETH/USDT pair trading below the 100 and 200 DMA reflects a bearish trend. However, the rising 20 DMA bolsters the current recovery rally.
The daily-MACD indicator line stands at the doorstep of the neutral zone. If ETH buyers completed the bullish pattern, the MACD and signal would jump above the midline, providing additional confirmation to long traders.
- Resistance levels- $3380, $3645
- Support levels are- $2800, 2400
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