ETH Shows Mixed Signals During Consolidation

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.

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ETH/USDT 4-hr chart (source: TradingView)

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.

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Jesus Dawal

Jesus Dawal Jr covers news related to the crypto space in Asia and in Australia, although he follows the latest events in the US and Europe as well. He is most interested in the blockchain gaming and regulation aspects of the industry.