Ethereum’s price has ascended over the past couple of days after finding support at the $2,000-mark. However, gains have been minimal as the market remains in a tangle between buyers and sellers. At the time of writing, Ethereum traded at $2,156, up by 2.7% on the back of a minor recovery in the broader market.
Ethereum 4-hour chart
Source: ETH/USD, TradingView
A steady decline over the last few days dragged Ethereum to a low of $2,075. A bounce back from the aforementioned level saw the emergence of an up-channel as ETH moved north over the past few sessions. The 20-SMA (red) was flipped back to bullish after a period of 4 days due to this rise and now lent support to prices. However, buying pressure still seemed weak in the market and prices were expected to move sideways over the coming sessions.
Reasoning
The Directional Movement Index’s +DI maintained above the -DI and indicated a bullish trend, but an ADX reading of 15 suggested that the trend was weak. Relative Strength Index traded at neutral 50 and held a balanced position. Interestingly, Awesome Oscillator formed a bullish twin peak- a setup that usually sees an influx of buying pressure.
If buyers push ETH above the upper trendline of its pattern, a temporary 3.6% push was possible to its 12 June swing low of $2,257. Conversely, a rise in selling pressure could be cushioned at a defensive line of $2,125- an area that showed a high level of interest for ETH according to the Visible Range. A fall below this support could see prices head towards their next line of defense at $2,075.
Conclusion
Although there were some bullish cues in the Ethereum market, the lack of stronger signals could result in some sideways movement before a more definitive trend emerges. If volatility picks up, chances of a move to the upside slightly edged a more bearish outcome.
