The Ethereum Price Is Rising Above Resistance Levels
The latest price analysis suggests that the Ethereum price (ETH) is on the rise after breaking above the moving average lines and the resistance level of $1,600. However, a long-term analysis indicates a bearish trend.
Bearish Long-Term Analysis
Despite the recent positive momentum, selling pressure is expected to increase at the recent high, similar to what happened on October 16 when Ether fell to $1,552. The current price action indicates that an upside push is unlikely. The presence of long candlestick wicks suggests significant buying at higher price levels. The moving average lines are already slowing down the upside movement, and if the recent high is rejected, Ether could drop to a low of $1,542.
Ethereum Indicator Analysis
Although there has been a price recovery, the price bars are still below the moving average lines, making Ether vulnerable to further declines. The downward sloping of the moving average lines confirms the downtrend. However, in lower time frames, there are indications of an upward trend with moving average lines pointing north.
Technical Indicators
Key resistance levels for Ethereum are at $1,800 and $2,000, while key support levels are at $1,600 and $1,400.
The Next Direction for Ethereum
Ether is currently in an uptrend but has been rejected three times at the $1,640 resistance level on the 4-hour chart. Breaking this barrier would allow Ether to continue its upward movement.
Coinidol reported on October 16 that Ethereum fell to a low of $1,521 before recovering to a high of $1,580 at the time of writing.
Hot Take: Ethereum Price on the Rise but Faces Resistance
The Ethereum price is showing signs of upward movement after breaking above resistance levels. However, the long-term analysis suggests a bearish trend, with selling pressure expected to increase. The presence of long candlestick wicks indicates buying at higher levels, but the moving average lines are slowing down the upside. Ether’s next direction will depend on its ability to break through the $1,640 resistance level. Overall, while there is potential for further price recovery, caution should be exercised due to the bearish outlook.
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