Ethereum (ETH/USDT) Gearing Up for an Upside Correction
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Ethereum Long-term Analysis: Bearish
With a bearish outlook, Ethereum against Tether seeks to make a remarkable upside correction in no time. Though the price is still 7.78% short of the previous week’s trade, the recent activities of the short traders suggest there might be an upside correction anytime soon.
The recent price actions suggest the pair has been hovering between $2,200 and $2,800 with difficulty breaking above the upper limit. However, the compressed moving averages suggest indecision in the market, but with a spike in the trading volume, the pair may see an uptrend in the near term.
ETH/USDT currently trades at $2,533.15, and an upside correction is expected once the GMMA crossover is complete; otherwise, the pair may consolidate for a while before continuing a further downtrend.
Technical Indicators
Major Resistance Levels: $2,800, $3,000, and $3,500
Major Support Levels: $2,200, $2,000, and $1,800
Ethereum Technical Analysis
The analysis of Ethereum against the USDT on a weekly timeframe suggests the pair has been moving back and forth between the $2,200 and $2,800 levels in a downtrend. However, indicators of the chart suggest the price may be preparing for an uptrend soon.
From the GMMA, the indicator’s recent compression suggests there might be a potential crossover that may result in a short period of consolidation before uptrend, provided there is bullish momentum to back it up.
On the downside of the chart, the Stochastic RSI suggests the pair is operating in the free zone (neither overbought nor oversold) with low trading volume. However, with the lines of the indicators pointing to the north, a break above the $2,800 level requires strong bullish pressure, but a break below the $2,200 level will drive the price downward.
From the economic news side, the Ethereum price may see a strong positive uptrend in the near term if the EIP improvement proposal becomes successful. This may catalyze the price improvements.
ETH/USDT Analysis: a Correction or a Continued Downtrend
On the daily timeframe, ETH/USDT is still bearish with the price at $2,534.39 with a 0.39% positive difference from the previous candle. However, the slight curvature of the short-term traders moving averages towards the investor’s moving averages shows a period of consolidation or a trend reversal is on the horizon.
On the other hand, the Stochastic oscillator suggests the pair is in an oversold region and may be due for a reversal soon. However, with foreseen support and resistance levels around $2,580 and $2,500, any attempt to break these levels will determine the next direction of the coin.
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