Ethereum price flashed a recovery over the past 24 hours after seeing consolidation at the $1800 price tag. Over the past week, ETH recorded a 20% increase. It has been a bullish week for the altcoin king. The last time the altcoin was traded around this price level was about two months ago.
It failed to topple the $1,900 area, and recovered shortly thereafter. The strong support line for Ethereum price was at $1600. The price of Ethereum will likely see a sharp change once the Ethereum Merge goes live next month.
The merger is the move from Proof of Work to Proof of Stake which has been a highly anticipated event for the Ethereum community. This shift from Proof of Work will reduce altcoin energy consumption by approximately 99.5%. If the price of Ethereum can stay above the $1900 mark for an extended period of time, the coin will be able to touch the $2000 price ceiling.
Ethereum Price Analysis: Four Hour Chart
ETH is trading at $1,918 at the time of writing. The coin finally managed to break out of the $1800 price area. Ethereum price must maintain the momentum above the $1900 mark in order to touch the $2000 price mark.
The coin’s upper resistance was at $1,970. The local support level for the coin was at $1,700 and $1,600, respectively. If ETH loses ground and drops to the $1600 mark, the inability to continue at this price level could push the coin to $1,300. The amount of Ethereum traded decreased in the last session which means that selling pressure was declining at the time of writing.
The technical outlook of the altcoin depicts an upward trend on the 4 hour chart. Ethereum buying power also increased as the price of Ethereum moved higher on its chart. The RSI was flat above the 60 level indicating buyers control the market at press time.
If the demand for ETH continues to rise, the altcoin may be overvalued leading to a possible price slide. Ethereum price was above the 20-SMA line, which means that buyers were driving the price momentum. The altcoin was also above the 50-SMA line which indicates an asset price rally.
Other important indicators for ETH also depicted positive price action. Moving Average Convergence Divergence is supposed to display price momentum and reversals at the same time. MACD saw a bullish cross and flashing green signal bars above half of the line recording a buy signal for the asset.
The trend movement indicator is responsible for determining the direction of the price of Ethereum. The DMI was positive as the +DI line was higher than the -DI line. The average trend indicator (red) was close to 40 which means the current price trend is gaining strength.