Technical analysis of Ethereum suggests a potential momentum shift, as indicated by TD Sequential signals.
Technical Indicators and Market Trends
During its recent downward phase, Ethereum formed a series of lower highs and lows. However, the latest weekly candle shows a long lower wick, indicating investor purchases at sharp drops. The TD Sequential indicator displayed a '9' on the weekly and daily charts, which previously signaled trend reversals or reduced selling pressure. These facts support the potential for an Ethereum price increase.
Support and Resistance Levels
The first support zone for Ethereum is between $2,490-$2,500, a critical area reinforced by previous buyers. Potential resistance is located between $2,730-$2,850. Breaking through this level could indicate further growth.
Momentum Indicators and Price Movement
The Stochastic RSI indicator shows Ethereum is oversold and ready for a momentum shift. Previous similar levels have led to price bounces. At the time of writing, Ethereum's price was $2,716.02, up 2.98% in the last 24 hours. If buying pressure sustains, Ethereum could target higher resistance levels between $3,200-$3,500.
Ethereum's price is currently at a critical development point. A momentum shift could drive prices to higher resistance levels.
