Disclaimer: The results of the analysis below are the sole opinion of the author and should not be construed as investment advice
Ethereum price has rallied solidly in the past two days after losing a significant portion of its trading price in the early hours of April 23rd. However, the bullish momentum that helped the coin recover at press time quickly faded and if similar conditions prevail, a period of consolidation for ETH could soon follow.
At the time of writing, ETH was trading at $ 2,277 with a market capitalization of over $ 267 billion. Last week, ETH lost almost 7 percent of its value despite a 5 percent increase in the last 24 hours.
Ethereum 1-day chart
According to the ETH daily chart, the price movement last week was largely tied to the bandwidth despite the price correction. The coin traded for the most part amid its immediate support at $ 1,894 and the overhead resistance at $ 2546. This is likely to continue for the next few days and for most of the following week as the upward momentum slowly subsided.
In such a scenario, it is difficult to determine whether a short or long position is best for traders in the current market, especially when taking into account the long-term price trend of the coin.
Technical indicators saw a sharp decline in upward sentiment after a short-term buyers market emerged that helped the coin rebound. The MACD indicator saw a bearish crossover and a trend reversal did not seem likely in the coming days.
The RSI agreed as it moved away from the overbought zone and went below the neutral zone. This could lead to two things – firstly, another price correction, and secondly, ETH could trade sideways over the course of the week if support holds.
Given that bullish momentum is rapidly disappearing from the ETH market, the coin is likely to be headed for immediate support at $ 1,894 and be tied to the trading range. An initial support breach didn’t seem very likely given current market dynamics. However, if the coin is able to break its immediate resistance on the coming day, further pricing beyond its current ATH cannot be ruled out.
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