Ethereum Faces Resistance at the 100 EMA: ETH Consolidation Awaits!
Ethereum is not just a blockchain or cryptocurrency but an essential aspect of cryptography that showcases transformation and evolution along the way of its growth. Understanding the changing dynamics, ETH has even prepared the layout to transition towards Proof of Stake to address the energy consumption issue of its current operational Proof of Work. Of the different types of cryptocurrencies, such as utility, payment, stablecoins, and security, ETH comes under the utility differentiation.
There are many rumors about the coming age for Proof of Stake concepts rendering it meaningless to tackle future challenges. At present blockchain dynamics, ETH ranks second, and there isn’t any potential blockchain to dethrone Ethereum from its prominent state. Market capitalization for Ethereum has already reached above $202,879,176,111, which is a good sign as the positive trend combined with sentiment will take this value even further.
The price action of ETH received a new life in July 2022, scaling its market capitalization significantly. All technical indicators support the positive trend, but a short-term profit booking proportional to consolidation is due before a major breakout. Click here to know more about the ETH technicals!
ETH currently faces resistance at 100 EMA as it spends five days overcoming this stringent resistance. Daily price momentum has also stopped within marginal tolerance from positive to negative side. The transaction volume has also hit a fresh low during this time despite RSI indicating a near-overbought trend. It would essentially call for a profit booking or reduction in the buying sentiment, which is pushing toe-to-toe effort just like the sellers.
The immediate support level of $1281, followed by strong support at $936, will continue to support ETH in the short term. Based on historical price action and pivot levels, the current resistance lies at $2013 and $3376. On an outer look, ETH’s price action seems like substantial buying happened near the support level of $1280, followed by the resistance at the 100 EMA curve coming into action, forcing the token to move down.
ETH will need a bounce back, which could be possible from $1600. Ethereum has an uptrend possibility for the short run and long run too. The MACD indicator has moved closer to realizing the possibility of a bearish crossover that could hit the token’s bullish momentum.
ETH on weekly price trend closed the last week in a state of no confidence. The lower wick indicates support helping the price climb, but the upper wick indicates resistance at $1780. With the current week starting on a negative tone, the inability to maintain a positive movement can weigh heavily on the price action.
RSI indicator has shown reaching a plane after its initial upside movement, but the MACD indicator signifies an alternate movement with a bullish crossover already having undertaken. The resultant price action should move upwards to $2000 with some consolidation as the daily candlestick indicates lower daily volatility.
