Here’s How Ethereum Price Could Escape Ongoing Consolidation 

For over a month, the Ethereum price has resonated between the $1680 and $1500 levels, creating a rectangle pattern or narrow consolidation phase. Usually, the formation of this pattern after a significant rally is considered a retesting period before the prices continue with a bull run. Thus, a breakout opportunity will be a key factor here to determine the near future price of Ethereum.

Key Points: 

• On November 16th, the long higher price rejection candle at $1680 indicates the overhead supply pressure is high.
• Either side breakout from the rectangle pattern will encourage a significant rally on the respective side.
• The intraday trading volume in Ether is $11.6 billion, indicating a 3.4% loss.

Source- Tradingview

Earlier this week, the Ethereum price witnessed a strong inflow and managed to rebound from the $1500 local support. This bullish reversal pushed the coin price 12.2% higher to rechallenge the range resistance of $1680.

On February 16th, the coin showed a breakout attempt from the $1680 barrier and reached a high of $1740. However, the overhead selling pressure undermined buyers and, by the day’s end, pulled the prices below $1640. 

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Thus, the resulting long-wick rejection candle accentuates the high supply pressure still existing. The Ethereum price currently trades at the $1667 mark, but if it shows sustainability below the $1680 mark, the ongoing consolidation is likely to extend for a few more sessions. In addition, a potential bearish reversal may even plunge the ETH price back to $1500 support.

Therefore, the Ethereum price needs a daily candle closing beyond the mentioned level of the rectangle pattern to kickstart a directional rally. 

A breakout above $1680 will hint at the continuation of the bullish rally and may push the price beyond $1800 to reach $2000.

On a contrary note, a breakdown below $1500 will trigger a prolonged correction and may plummet the ETH price to $1350

Technical Indicator

RSI:  The daily RSI slope wobbling around the midline indicates a neutral sentiment from market participants. 

EMAs: the coin price trading above the crucial EMAs(20, 50, 100, and 200) indicates the buyers possess an upper hand. Moreover, the 50-and-200-day EMA near a bullish crossover may encourage a $1680 breakout. 

Ethereum Coin Price Intraday Levels

• Spot rate: $1666
• Trend: Bullish
• Volatility: Medium
• Resistance level- $1680 and $1788
• Support level- $1500 and $1420