The ETH/USD pair has made a local high at the level of $2,684 and is currently consolidating the recent gains in a narrow range ahead of the last swing high on the H4 time frame chart. The bulls broken above the supply zone so the levels of $2,390, $2,445 and $2,473 will now act as the technical supports. The intraday technical support is seen at the level of $2,613. The H4 time frame momentum is strong and positive, which supports the short-term bullish outlook for ETH, however, the current market conditions are extremely overbought.
Bullish Indicators:Ascending Channel: ETH is trading within an ascending channel, indicating a steady uptrend with higher highs and higher lows.
Moving Averages: The price is currently above both the EMA 100 and the DEMA 50, suggesting a bullish trend.
RSI (Relative Strength Index): The RSI is around 75, which is typically a sign of strong bullish momentum. However, it's also close to the overbought territory, which warrants caution.
Bearish Indicators:Overbought RSI: An RSI near or above 70 can indicate overbought conditions, which could precede a price correction.
Resistance Levels: The red line on the chart indicates a significant resistance level. If ETH cannot breach this level, it might face a reversal or consolidation.
The Intraday 1H Indicator Signals:- 18 out of 23 technical indicators are showing Buy signal, 5 showing Sell signal
- 18 out of 18 moving averages are showing Buy signal
Sentiment Scoreboard:The general sentiment on the scoreboard is very bullish (75% vs.25% bears). Last week bullish sentiment increased even more (78% bulls vs.22% bears) together with the last three days sentiment (81% bulls vs.19% bears).
Weekly Pivot Points:Pivot Points are key price levels used in technical analysis to identify potential trend reversals, support, and resistance levels in financial markets.
WR3 - $2,586
WR2 - $2,542
WR1 - $2,519
Weekly Pivot - $2,499
WS1 - $2,476
WS2 - $2,455
WS3 - $2,412
If the bullish trend continues, and ETH breaks through the resistance level, it could aim for higher price targets. The next target for bulls is indicated by the blue arrow pointing towards the red horizontal line at the top of the chart. Breaking past this level could lead to increased buying pressure and a potential new high.
Bearish Scenario:Should ETH fail to surpass the resistance level and the RSI indicates that the asset is overbought, traders might start taking profits, leading to a price correction. A bearish reversal could see ETH's price fall back towards the support levels of the EMA 100 or the DEMA 50. A break below the lower boundary of the ascending channel could intensify selling pressure, pushing the price towards lower support zones indicated by the horizontal green lines.
Key Levels to Watch:Upside Target/Resistance: The red horizontal line where the next bull target is set.
Support Levels: The DEMA 50 and EMA 100 lines, and the lower trendline of the ascending channel.
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