Key assistance levels: $ 3,000 – $ 2,750
Key resistance levels: $ 3,300 – $ 3,600
ETH’s downtrend is currently pausing, with prices stopping just above $ 3,000. Sellers appear unable to lower the cryptocurrency after yesterday’s latest attempt briefly lifted the price to $ 2,926 (Bitstamp) before returning above key support.
The resistance is found at $3,300 and appears quite far away at the time of this post. Before buyers have the confidence to put ETH on the uptrend, the key support level has to prove trustworthy.
Technical indicators
Trade volume: There was a spike in volume yesterday when the price of ETH fell below $ 3,000 for a short time. However, as soon as the price fell below these key levels, buyers rushed forward, pushing ETH above support. This price action and volume profile indicate that ETH has found a local bottom at this key psychological level.
RSI: The daily RSI has reached 26 points during the selloff last week (oversold area), and the latest attempt from yesterday to push ETH lower made a higher low on the RSI at 28 points. This shows that a bullish divergence may be forming.
MACD: Daily MACD also reflects RSI where histogram is hitting higher lows despite its bearish side. This is encouraging and may indicate that a relief rally could take shape in the future.
Bias
The bias for ETH is neutral. It is unlikely at this time that ETH will fall lower. Instead, a relief rally appears possible towards the key resistance at $3,300.
Short term price prediction for ETH
The price has reached a pivotal level given the volume profile of the past few days and the fact that ETH has managed to maintain a price above $ 3,000 despite several attempts to the contrary. If the past week was characterized by a massive sell off, this week could be an opportunity for ETH to reverse the uptrend and attempt a relief rally to key resistance.
