Being a little different from the Bitcoin price action, the Ethereum price is displaying the possibility of drowning in the current resistance. The price continues to test the crucial diagonal support, which raises concerns over the impending rally. The second-largest token attempted recently to reclaim the resistance, but it appears that a retest of the lower support could be more likely.
The daily chart suggests the crypto is closer to triggering a bounce from the lower crucial support that falls within an ascending triangle. The volume has just flipped in a bullish favour but the buying pressure is yet to accumulate. Therefore, if a rebound is validated before the day’s close, then the fresh month’s trade can be expected to start on a bullish note.
As mentioned before, the ETH price is testing the lower crucial support, and the day’s trade is constantly flipping between bullish and bearish favour. This indicates serious competition between both of them, which may have a major impact on the upcoming monthly close. Besides, the technical pattern raises some concerns as the DMI is bearish. ADX is heading towards lower support, indicating a decrease in the strength of the rally. Besides, the +Di & -Di are closer to undergoing a bearish crossover.
Hence, the probability of a pullback below $2000 could be on the horizon. If the bulls display weakness here, the rally could trigger a drastic drop towards the lower support below $1800. However, the probability of a rebound remains higher as the token has been consolidating below $2200 in the past 1.5 years without any weekly close above these levels. Hence, a popular analyst, Altcoin Sherpa, believes the ETH price could reach $3000 in the next few months.
Therefore, the Ethereum price is believed to trade within an ascending triangle until it reaches the apex. Further, by the end of the first fortnight, the price is expected to trigger a bullish breakout beyond $2200.
This news is republished from another source.
