Ethereum Bulls must break $2,700 resistance line

Ethereum maintained the $2,600 bandwith, on Saturday. Due to a descending trendline that has continuously blocked any attempt at an upward move, ETH has been consolidating since the market decline on August 5.

Trader caution is warranted if Ethereum can’t maintain its position above $2,700, particularly in light of growing selling pressure. A decline towards $2,500 may be imminent.

ETH saw a similar move from August 2022 to November 2022 and July 2023 to October 2023 before witnessing a rally, as shown by significant descending trendlines in the above chart.

The present trendline indicates that ETH may drop further toward the $2,000 to $2,200 region.  After a large cascade on Aug 5, Ethereum found support at $2.1K and saw a modest bullish rebound.

But now that the wedge’s lower boundary has broken, the price is retracing, suggesting that the pullback may be completed. This bias projected that the next few days could see a bearish continuation.

The recent rally in Ethereum from $2,505 to $2,720, along with rising volume, is depicted on the 1-hour chart. This suggests some short-term bullish momentum. Despite this, the price is having difficulty staying above $2,700, indicating that there may be difficulties ahead.

ETH is trying to break above a rising lower trendline of an ascending triangle on the 4-hour chart. the super altcoin may try to move toward the upper trendline of a three-year symmetry triangle if this move is successful.

The bearish momentum will gain strength from such a move. A bullish reversal could be indicated, though, a successful move above the triangle’s horizontal line. If this happens, ETH will rise toward the $3,230 resistance level.

The upper trendline of the three-year symmetry triangle may be the target for ETH if it breaks above this resistance. The recent price decline has resulted in a significant drop in Open Interest, indicating high liquidations. The market may see a more sustained uptrend if there is enough demand in the spot market. This could be advantageous.