Ethereum Price On The Verge Of Rectangle Pattern Breakout: Is $2000 Within Reach?

At the time of writing, ETH was priced at $1,870. The daily chart indicated a potential breakout as the price approached the upper boundary of a rectangle pattern. The crucial overhead resistance for Ethereum was identified at $1,880.

If the price managed to surpass this level, it could potentially exceed $1,900 and ultimately reach the milestone of $2,000.

However, it was essential for ETH to surpass the $1,880 mark in the upcoming trading sessions. On the downside, there was a local support level of $1,820. A dip below this point could lead to a decline towards $1,770.

Technical Analysis

The inability to break through the $1,900 level had a detrimental impact on investor confidence, resulting in ongoing challenges for Ethereum regarding demand on the daily chart. The Relative Strength Index (RSI) remained positive, although it suggested a relatively low level of demand.

Furthermore, Ethereum’s current position below the 20-Simple Moving Average line indicated a decline in buying strength, indicating that buyers were gradually losing control of the price momentum.

In addition to the low buying strength, ETH also experienced a decline on capital inflows. This indicated a decline in investor interest, as evidenced by the Chaikin Money Flow indicator.

Conversely, the Moving Average Convergence Divergence (MACD) formed declining red histograms, suggesting a potential breakout in the upcoming trading sessions. The MACD is a useful tool for identifying price momentum and trend changes.

The next trading sessions will be critical for ETH. It will determine whether the market will be driven by bears or bulls, ultimately influencing the price.

Featured image from UnSplash, charts from TradingView.com