Ethereum trend analysis: ETH rejected from $1,300 as bearish pressure increases

TL;DR Breakdown

  • Ethereum price has been rejected from the $1,300 level.
  • However, Ethereum trend analysis shows strong bullish presence.
  • Ethereum price expected to observe low volatility in the short-term.

Ethereum price is on a steady rise above the $1,000 level as the buyers continue to dominate the market momentum. Ethereum trend analysis shows clear bullish dominance as ETH price continues to rise.

The price has defended itself from falling below the $900 level as the buyers defended the key support level at $975. Subsequently, the price recovered above the $1,000 level, initiating a bull rally that has carried the price to current highs of $1250.

Ethereum price today

Ethereum trend analysis: ETH rejected from $1,300 as bearish pressure increases 1

Ethereum opened today with strong bullish momentum, which has been observed throughout the day. While ETH faces selling pressure, the bull momentum remains strong as ETH continues rising with wavelike price movements heading upwards.

The price has observed a strong rejection from the $1,280 mark, which has caused ETH price to fall in the short term. Since Ethereum price was rejected from the level, ETH has declined rapidly, retracing to the $1,250 support level. If Ethereum falls below $1,240, Ethereum trend analysis will show a bearish breakdown to the current ascending channel.

Ethereum trend analysis – 4-hour frames

Ethereum trend analysis: ETH rejected from $1,300 as bearish pressure increases 2

Across the 4-hour charts, we can observe that ETH has spent the majority of its time inside two distinct ascending channels since January 4. The first ascending channel guided Ethereum price to the $1,300 resistance level. However, ETH failed to cross above the $1,300 level, and the trend broke down as ETH retraced to the $1,000 mark.

The second ascending channel extends to today, with Ethereum trend analysis suggesting further movement inside the channel before the price breaks out from the channel. The ascending channel has guided Ethereum price from the $1,000 support level to retest the $1,300 mark. However, Ethereum has once again been rejected from the $1,300 resistance level, and the price has fallen below the $1,250 mark.

Ethereum trend analysis shows that ETH is still trading inside the ascending channel. Furthermore, ETH still has room for downwards movement inside the channel. Unless ETH breaks below the $1,150 mark, Ethereum price will remain above the current trend line.

Technical indicators

Ethereum trend analysis: ETH rejected from $1,300 as bearish pressure increases 3

The moving average convergence/divergence (MACD) shows increasing bullish pressure as the two exponential moving averages (EMAs) diverge further. The indicator is still bullish and will remain so unless ETH closes the day below the $1,200 mark.

The relative strength index (RSI) has also fallen below the 60.00 mark suggesting increasing bearish pressure in the market. However, the indicator remains neutral and does not show support for either side. The RSI suggests that ETH would continue moving inside the current ascending channel for the time being.

Overall, the 4-hour technical analysis issues a strong buy signal as 19 of the 28 major technical indicators are sending buy signals. On the other hand, only two indicators issue sell signals while another seven remain neutral, not leaning towards either side.

Ethereum trend analysis – conclusion

Ethereum trend analysis suggests that Ethereum would continue its wavelike bullish activity as ETH continues rising. The supportive technical indicators and the relatively low price volume suggests that ETH would continue observing low volatility for the time being.

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