Ethereum (ETH) price picks up bids to reverse the previous day’s pullback from a week’s high, up 1.50% intraday to $2,982 early Tuesday morning in New York.
In doing so, the biggest altcoin not only reverses the previous day’s retreat but also marks another attempt to cross the 50-day Simple Moving Average (SMA), which has been restricting the ETH rise since early October.
It’s worth noting, however, that momentum indicators like the 14-day Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) portray a sluggish picture of the ETH price action. The lack of momentum could also be witnessed in the quote’s sideways performance since December 20.
Meanwhile, a pullback in the trading volume and a sideways market capitalization (market cap) also challenge Ethereum buyers as they approach a short-term key resistance. According to Santiment, Ethereum’s daily trading volume eases to $19.29 billion, after hitting an 11-day high, confirming traders’ support for the latest ETH rise, while the market cap hits a week’s high to $359.88 billion at the latest.
Notably, a consolidation in the cryptocurrency market due to the year-end lack of trading participation and a light calendar also seems to be playing its part in challenging the Ethereum bulls.
Also read: Ethereum Validator Queues Turn Positive; Is an Ether Breakout Coming?
Let’s read the technical details of the Ethereum price action!
Ethereum Price: Daily Chart Portrays Consolidation
On the daily chart, the Ethereum price remains mildly bid within a 10-day trading range, reversing the previous day’s pullback from the 50-day SMA hurdle of $3,027.
Notably, the RSI line is near the 50.00 neutral level, and the MACD signals are also lacking any strength, suggesting a continuation of the range-bound trading of the ETH.
As a result, the area between the 50-day SMA and an ascending support line from June, close to $3,027 and $2,810, is likely to restrict the short-term Ethereum moves.
Should the quote cross the 50-day SMA hurdle of $3,027 on a daily closing basis, the 61.8% and 50.0% Fibonacci retracement levels of its June-August upside, near the $3,200 and $3,535, respectively, could attract the ETH bulls.
Beyond that, the 200-day SMA hurdle of $3,590 will be the last line of defense for the Ethereum bears.
On the flip side, a daily closing beneath the multi-month support line, near $2,810, could direct Ethereum sellers to the 78.6% Fibonacci ratio of $2,723 and November’s low of $2,622.
In a case where ETH remains bearish past $2,622, it becomes vulnerable to visit June’s bottom of $2,116.
Ethereum Price: Four-Hour Chart Highlights Symmetrical Triangle
ETH’s four-hour chart portrays a seven-week symmetrical triangle pattern, signalling a consolidation in the altcoin price as long as the quote stays between $2,840 and $3,330.
However, the Ethereum price reversed from the 200-bar SMA multiple times since mid-December, highlighting the $3,023 as an immediate upside hurdle for the buyers to watch.
It’s worth noting that the Ethereum price increase past $3,330 may not be the open invitation for the bulls as a horizontal area from October 10, between $3,658 and $3,678, could challenge the altcoin’s further upside before welcoming the buyers.
In that case, the daily chart’s higher levels will be in the spotlight.
Meanwhile, a downside break of the $2,840 support could direct ETH sellers toward November’s low of $2,622 before directing sellers toward the deeper levels discussed on the daily chart.
Also read: Mirae Asset Group Pursues Major Crypto Foray with $100 Million Korbit Acquisition
