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Ethereum Price Analysis: ETH/USD Another Bearish Wave?

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Ethereum has been pulling up in the past few days but is still in a descending channel on its 4-hour chart. Price has corrected to the 50% Fibonacci retracement level and could be due to resume the drop if this resistance holds.

This retracement area also lines up with a former support region that might serve as resistance. A larger correction could take price up to the 61.8% level closer to the channel top and the $170 mark, and holding as a ceiling could drag ethereum back to the swing low at the $150 level or the channel bottom closer to $145.

The 100 SMA is still above the longer-term 200 SMA for now to signal that the path of least resistance is to the upside. In other words, the climb could gain more traction and push past the Fib levels. However, the gap between the moving averages is narrowing to signal that bullish pressure is fading and that a bearish crossover might follow. In that case, selling pressure could increase and might even spur a break below the channel support.

RSI is turning up to show that buying pressure is in play and that price could keep climbing until overbought conditions are seen. Stochastic is also pointing up to show that bullish momentum is present. Once both oscillators hit the overbought zone and turn back down, selling pressure might return.

The recent rally in ethereum is being attributed mostly to Elon Musk’s tweets about the digital asset. He simply posted “Ethereum” then followed it up with a “jk” but this was too late as cryptocurrency fans started speculating about what his one-word tweet meant. Keep in mind that he also tweeted to Vitalik Buterin regarding the developer conference in October, hinting that the Tesla exec has strong interest in this particular coin.

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