Ethereum’s price trajectory is witnessing a notable descent, marking a departure from its earlier consistent ascent since February. The cryptocurrency had been steadily climbing within a parallel channel on the daily chart, with momentum intensifying towards late February, culminating in a bullish breakout from the channel.
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However, the previous resistance border, which had transformed into support, failed to sustain the upward momentum, leading to a current downward trajectory aiming towards the $3030.0 demand level. Ethereum appears to be undergoing a corrective phase as it seeks to establish a robust support zone amidst recent price fluctuations.
Ethereum Key Levels
Demand Levels: $3030.0, $2200.0, $1900.0
Supply Levels: $4200.0, $4940.0, $5000.0
Analyzing Indicators
The Stochastic oscillator has remained entrenched in the overbought region, reflecting the sustained price rise preceding the recent downturn. Before encountering resistance around the $4200 level, Ethereum’s price trajectory reversed course, initiating a plunge.
The Heikin Ashi candles have maintained a bullish stance following the recent examination of the supportive border within the bullish parallel channel on the 24-hour chart. The daily candles have dipped below the smoothed Heikin-Ashi candles, signalling a shift towards bearish sentiment in the market. Due to the current oversold conditions of the Stochastic, market observers anticipate a potential bullish recovery in the near term.
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