Here is the first support for ETH in the event of a short-term correction (Ethereum price analysis)

Here is the first support for ETH in the event of a short-term correction (Ethereum price analysis)

The upward trend of Ethereum was stopped after it reached the main resistance at $ 1.7,000. The price movement seems to be inconsistent, while many expect a short -term correction.

technical analysis

of Shayan

the daily

Ethereum exceeded the sliding 200-day average and the upper trend line of the multi-month channel due to the recent upward movement of the entire market. However, the price fell from the main resistance brand of $ 1.7,000 and now consolidates.

On the other hand, there is a considerable declining divergence between the price and the RSI indicator in the daily time frame. This could lead to volatility in the coming days.

Nonetheless, there are three critical static levels for Ethereum on the daily chart; The main resistance level of $ 1.7,000, the side support level of $ 1.3,000 and the main support level of $ 1,000

The price has been between $ 1,000 and $ 1.7,000 for several months, and the smaller support level of $ 1.3,000 will probably be the next stop of Ethereum if it is rejected by $ 1.7,000.

eth_price_chart_0702231 Tradingview

The 4-hour diagram

The price campaign of Ethereum seems to be declining in the 4-hour time frame, since it has formed an ascending head-shoulder pattern that is also known as a three-drive pattern, a popular reversal pattern in the classic price campaign after it has achieved an important resistance region.

If the cryptocurrency falls below the excerpt, about $ 1.5,000, the market should expect a short -term slump towards the small support level of USD 1.3,000. In view of the current price movement and the declining signs mentioned above, Ethereum will probably experience a phase of consolidation correction before the next impulsive movement.

eth_price_chart_0702232 Tradingview

on-chain analysis

of Shayan

The following diagram shows the 14-day RSI of the open interest metric in addition to the price of Ethereum. After the recent upward trend of the Bitcoin Prize in the past two weeks, ETH has also recorded an increase that shows signs of demand on the market.

As a result, the activity at the appointment market has also increased in the past week, which has led to an upward trend in Ethereum's Open Interest. When the RSI of the Open Interest reaches the red area (over 70), the possibility of a short -term correction is usually expanded.

eth_price_chart_0702233 Cryptoquant

At the moment, the metric has risen sharply and is about to enter the red area. Accordingly, a short-term break-in could rinse the heavily lifted long positions. This structure underlines the short -term risk of the appointment market.

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