- The market pump has lifted price above the $2,900 for the first time in three months.
- ETH/USD bullish impulse is repressed at the $3,350 key level.
- ETH might fall to the support level to move up again to have another go at $3,350.
ETH/USD might fall into consolidation after its bullish impulse is cushioned at the $3,350 key level. The recent market pump, which started on the 21st of July 2020, has lifted the coin above the $2,900 price line for the first time in about three months. Above the key level, the market has been prevented from punching higher. ETH/USD has thus been forced to divert its momentum into a sideways movement.
ETH/USD Key Level
Resistance Levels: $3,350, $3,600, $3,900
Support Levels: $2,900, $2,400, $2,100
The market has thus far been cranking in a sideways movement for the past 11 days above the $2,900 support. The Parabolic SAR (Stop and Reverse) indicates the market is still full of bullish momentum. It has aligned its dots under the daily candle from the 22nd of July up till yesterday. Currently, the market is trading around $3,000 after a routine fall from the $3,350 key level. The fall has attracted a dot from the Parabolic SAR above today’s candle.
The Stochastic Oscillator has had its signal lines pushed up into the overbought region of the chart since the market rally began. The latest drop in price from the $3,350 resistance has pulled the blue signal line just below the border of the overbought region. Price might fall to the support level to move up again to have another go at the resistance level.
The fall in price has been vividly reflected on the 4-hour chart. Price is falling hard after it presented a tweezer top candlestick pattern. The Parabolic SAR on the 4-hour chart has 8 dots placed above the daily candlesticks. The Stochastic Oscillator has zigzagged downward until it plunged itself into the oversold region.
The coin will bounce up from $2,900 to break the $3,350 resistance.
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