Over the past two weeks, Ethereum (ETH) price has increased by over 24%. Because of that, the alternative token turned around a two-month support level of $1,442. However, the leading alternative may face temporary obstacles in the coming sessions, as the resistance at $1,790 coincides with the upper trend-line of the upward channel.
However, the general Ethereum community’s mood may begin to turn around as the project readies itself for the long-awaited Merge in the wake of the successful shadow fork. At the time of writing, the price of Ethereum was $1,767.1, up 2.7% from the day before.
Ethereum Daily Timescale
After bouncing back from the expected breakdown of the descending wedge, the bullish momentum in Ethereum returned. Bulls have been encouraged by the token’s rise over the past two weeks to test the limits of their supply territory around the $1,790 price area.
Meanwhile, the return to buying is being met with resistance at the upper boundary of the rising channel. Considering the confluences of the border and the resistance at $1,790, Ethereum might witness a brief higher price rejection from the nearest resistance. The Bollinger Bands’ upper band continued its northward trend, though.
If the bands on the top side of the sky close, that could mean tense pauses in the sessions to come. If $1,790 is breached with a closing price, we could see a prolonged decline. In such cases, the range of $1,907–$1,993 could represent reasonable goals. Meanwhile, if $1,703 is broken, it could usher in a period of temporary weakness that could send ETH prices tumbling to $1,648.
Reasoning
An extreme buying advantage was depicted as the RSI (Relative Strength Index) closed consistently above 50. If the price stays above this level for an extended period of time, buyers will likely not lose their grip. However, the AO (Awesome Oscillator) showed greater peaks closer to zero. A price close higher than that area would bolster buy signals. Notwithstanding, ADX showed a sizeable albeit weak directional bias for ETH.
Concluding Remarks
The hope that Merge will happen could help the alternative currency and make the market more bullish. To validate their dominance, buyers should await a closing price above $1,790. All highlighted targets would remain so. Lastly, investors should keep an eye on Bitcoin’s price because Ethereum has a staggering 92% correlation with BTC.
