Ethereum: We report on ETH’s likely trajectory for the coming week

Denial of responsibility: The findings of the following analysis are the sole views of the author and should not be considered investment advice.

Ethereum [ETH] it posted a gain of over 24% over the past two weeks after making a turnaround from its two-month support around the $1,442 zone. With the $1,790 resistance coinciding with the upper trend line of the up-channel (yellow), the king alt could face short-term obstacles in the coming sessions.

However, the coin’s broader sentiment could improve given Ethereum’s readiness to merge following the successful completion of its shadow fork.

At press time, ETH was trading at $1,767.1, up 2.7% over the past 24 hours.

ETH Daily Chart

Source: TradingView, ETH/USD

ETH renewed its bullish strength after recovering from the expected falling wedge. The altcoin’s growth over the past two weeks has helped bulls test the limits of its supply zone in the $1,790 area.

This buyback now faces barriers near the upper boundary of the ascending channel. With the contribution of this range and the $1,790 resistance, ETH could see a slight rejection higher from the immediate resistance.

However, the upper Bollinger Bands (BB) continued to look north. Any close above the upper zone would confirm the chances of a volatile break in the coming sessions.

A close above the $1,790 resistance could lead to an extended decline. In this case, potential targets would range from $1,907 to $1,993. On the other hand, a break below the $1,703 support could pave the way for a rather short-term decline towards the $1,648 zone.

Logic

Source: TradingView, ETH/USD

The Relative Strength Index (RSI) finally found a solid close beyond the balance to depict a strong buying edge. A firm position above this level would help buyers maintain their advantage.

Additionally, the Awesome Oscillator (AO) saw higher peaks as it neared the zero point. A close above this mark would imply buy signals. However, the ADX revealed a significantly weak directional trend for the larger alt.

conclusion

The anticipation of the Merger could help fuel a relatively bullish sentiment in the market. Buyers should wait for a close above the $1,790 resistance to confirm their bias. The objectives will remain the same as mentioned above.

Finally, investors/traders should be wary of Bitcoin [BTC] movement. This, because ETH shares a whopping 92% 30-day correlation with the king coin.

Leave a Comment