Ethereum Technical Analysis: ETH Faces Tight Trading Range Under Resistance

Ethereum (ETH) continues to showcase its volatility and potential for strategic trading. As of June 10, 2024, ethereum’s price stands at $3,677, reflecting a daily range of $3,654 to $3,714.

Ethereum

Ethereum’s 1-hour chart reveals short-term volatility, with ether’s price testing lower levels around $3,642 and struggling to maintain above $3,700. Key support is identified at $3,642, while resistance is around $3,722. Increased volume on the drop to $3,642 suggests this level may hold as a potential support, indicating buyer interest.

ETH/USD daily chart.

On the 4-hour chart, ethereum exhibits a downtrend with a significant decline to $3,570, followed by a consolidation phase as the price attempts to stabilize around $3,700. Support is firmly set at $3,570, and resistance at $3,889. Volume spikes on large red candles indicate strong selling pressure.

ETH/USD 4-hour chart.

The daily chart showcases a notable upward movement followed by a sharp drop and subsequent consolidation. Ethereum peaked at approximately $3,980 and has been declining since. Key support lies around $3,570, with resistance near the recent high of $3,980. High volume on large red candles indicates substantial selling pressure.

The oscillators present a mixed outlook for ethereum. The relative strength index (RSI) at 53.7, Stochastic at 27.8, commodity channel index (CCI) at -134.3, and awesome oscillator at 235.9 all indicate neutral signals. However, the momentum oscillator at -78.6 and the moving average convergence divergence (MACD) level at 95.4 both suggest a sell action.

Moving averages (MAs) provide a blend of buy and sell signals. Short-term averages, such as the 10-period exponential moving average (EMA) and simple moving average (SMA), both suggest a sell action with values at $3,729 and $3,759 respectively. Conversely, mid to long-term moving averages, including the 20-period EMA at $3,676 and 30-period EMA at $3,60, suggest a buy.

Long-term averages also favor buying, with the 50, 100, and 200-period EMAs and SMAs all indicating a bullish stance. This mixed outlook from moving averages calls for cautious trading, aligning with both short-term sell signals and long-term buy signals.

Bull Verdict:

Ethereum’s mid to long-term moving averages and the potential support level around $3,570 suggest buying opportunities. If the price approaches this support with decreasing volume, it could signal a rebound, presenting a strategic entry point for long-term gains.

Bear Verdict:

Short-term indicators and recent high-volume selling pressure present bearish signals. Immediate resistance levels and sell signals from short-term moving averages warrant caution. Traders should consider short positions or look for selling opportunities on upward movements struggling to sustain.

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