- Ethereum is displaying mixed signals during its consolidation phase.
- However, ETH is not oversold yet, which may encourage day traders to buy in.
- At the time of writing, ETH is changing hands at $1,601.71, according to CoinGecko.
Ethereum (ETH) continues to lead the much-needed relief rally, as it continues to establish a strong base right above the $1,500 price mark. However, a couple of signals recently appeared, causing another strong tussle between the bears and the bulls.
The collective crypto market has been indecisive in the last couple of days, as Bitcoin and most altcoins are lingering longer than they should at the supposed-to-be support levels. Others may consider this a negative sign, as buyers are having second thoughts before buying in.
However, this narrative does not entirely apply to Ethereum. In fact, others are expecting Ethereum to lead the charge. Specifically, Ethereum is not near testing its psychological retracement support, which is $1,500. At the time of writing, ETH is changing hands at $1,601.71, according to CoinGecko.
Bulls should not be overconfident though, as the 4-hour chart confirmed a subtle Head and Shoulders pattern, which is a bearish signal. This may have formed due to the market not being entirely sold out to the idea that the bottom is in. Regardless, the said bearish pattern may hamper ETH’s progress toward the perceived target at $1,800.
To be fair, Ethereum is in a consolidation phase. For those who are not aware of the term, this means that the market is indecisive. The underwhelming trading volume also confirms this.
Meanwhile, the Relative Strength Index (RSI) at 58 shows that ETH is not yet oversold, which may give scalpers an opportunity to make profits in the Spot market instead of shorting.
Disclaimer: The views and opinions in this article belong to the writer alone and they do not necessarily reflect the position of CryptoNewsLand (CNL). No information in this article, whether expressed or implied, should be taken as financial advice. Remember that investing in cryptocurrency poses significant risks to your asset. Hence, CNL strongly recommends all readers perform their own in-depth research before investing in cryptocurrency.
Recommended News :
Crypto News Land (cryptonewsland.com) , also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.