The Ethereum (ETH) price chart shows strong buying pressure from this bottom support, preparing for a bullish reversal. The price action suggests the formation of a cup and handle pattern that could start a rally. Ethereum ETH) price lost about 38% as it made a new low of $3300 from its all-time high.
Main technical points:
- The MACD indicator shows a bullish crossover between its lines
- ETH price chart showing a bearish crossover of the 20 and 100 SMA
- Ethereum’s 24-hour trading volume is $9.2 billion, showing a loss of 15.6%.
The source-Tradingview
Previously when we mentioned an article about Ethereum Coins, the ETH/USD pair has dropped to the 0.618 Fibonacci retracement (2950). The technical chart shows a few candlesticks that reject the price lower at this support area, indicating the presence of strong demand pressure.
On January 11, the chart shows a bullish engulfing candle bouncing off the $2950 level. ETH price is currently trading at $3292, showing a 12% increase from the bottom support. The coin is struggling to overcome the combined resistance of $3400 and the 200 SMA.
The important SMA lines (20, 50, 100 and 200) show a downtrend in the daily time frame chart. Furthermore, the coin also provides a bearish crossover of the 20 and 200 SMA, attracting even more sellers in the market.
Moving Averages Convergence Divergence: This short-term bounce triggered the bullish crossover of the MACD and the Signal line, signaling a buy signal for long-term traders.
Ethereum price chart forming a cup and handle pattern
The source- Tradingview
ETH price is currently trading at $3,364, showing a 13% increase from the $2950 bottom support. Furthermore, this recent bounce suggests a cup and handle pattern in the 4-time chart. hour.
The pattern has its neckline at the $3400 mark and an increasing underlying bullish bias could generate a bullish breakout from this resistance. The supertrend indicators have turned green indicating a shift to an uptrend.
The technical chart shows that the critical supply for ETH price is at $3400 and $3600. Furthermore, the support levels are at $3,200, followed by $2950.
Ethereum Fear and Greed Index
-Compared to a few weeks ago, the Ethereum fear and greed index has shown a slight improvement as it has moved from the Extreme Fear zone (under 30) to the fear zone (31). However, the general sentiment of market participants is still bearish.