- Ethereum to correct before resuming a bullish pattern
- Several resistance levels to cross for Ether price
- Investors are buying every swing low
Ethereum News Today – a look at the weekly chart for ETH/USD shows that Ether is facing strong resistance on the day. Ethereum will likely go through a correction before it initiates a fresh bull run.
Ethereum (ETH) Price Today – BTC / USD
Ethereum is Facing Strong Resistance
After undergoing a six-months-long correction, ETH bottomed at $117 mid-December last year. Since then, Ethereum has seen its value increase by 100% to reach a high of $230 for the year. The digital asset appears to be facing a significant resistance position that could stop it from rising further here is why:
IntoTheBlock, a statics modeling, and machine learning firm, predicted that the $227 price position represents a huge barrier for Ether. According to the firm’s IOMAP (In-Out of the Money Around Current Price) model, 506,000 addresses are collectively holding 3.67 million ETH at $224 and $231. ETH could fail in its attempt to break this price level on the first pass given the high supply levels of the digital asset.
The IOMAP also adds that rejection at $227 could trigger a correction for Ether to the next support between $209 and $216. This is the price point were 838,000 addresses hold 4.02 million ETH.
Investors are Buying Every Swing Low
Looking at Ethereum’s daily chart, we can see that the TD sequential indicator has given two sell signals. The bearish formation shows that the uptrend that ETH is currently enjoying could reach an exhaustion point soon. Which could trigger a correction or a new downward movement.
An increase in ETH’s selling pressure at the current price could validate the sell signs posited by the TD sequential pointer. If this occurs, then the price of Ether could plunge into the 78.6% Fib retracement position at $206. This is where IntoTheBlock’s data found a significant support position. However, breaking below that point could trigger a stronger correction.
The next positions of support for Ether are at the 61.8% and 50% Fib retracement levels. These hurdles are at $187 and $174. Not that investors are looking to buy every swing low for the digital asset. Hence, the bullish outlook can’t be voided even though there are bearish signs. If Ether can break above its recent high at $230, the next support position of resistance is seen at the 127.2% Fib retracement level at $261.
Considering the trend of growing altcoin dominance, we can’t rule out a test of this higher support position. Time will determine whether there will be sideliners to re-enter the Ether market or if the Ether bulls will stay in control and pushing the price of the digital asset to new highs.