Ethereum is on the verge of breaking another resistance. It’s been on a bullish spree for the most part of the previous week and crushed a lot of resistance. As a result, the coin registered its first green candle on the weekly candle. The candle also carried a significant 10% gain.
One of the key highlights of the week happened on Tuesday when the largest altcoin attempted the $1,800 resistance for the first in almost ten days. Although it failed to break the mark, it peaked at $1,796. It also ended the day with gains of more than 3%.
The next day was the most bullish of the seven-day period. It kicked off trading at $1,792 and surged past the highlighted barrier. It went further to retest $1,900. However, it failed to break this key level as it faced strong resistance to the massive push. Nonetheless, it closed with price exchanging at $1,889 which signified a more than 5% positive change in value.
These increases are spreading optimism among traders. There is speculation the largest altcoin may retest $2k and move further to $2,100. On the other hand, a key indicator points to a huge decline to a level the coin hasn’t seen in the past few months.
Ethereum Futures Chart Displays Huge Gap
Over the last few days, ETH closed a key CME gap to the top. Formed two weeks ago, the asset filled the space between $1,82o and $1,740. The action offered relief from a drop that saw the largest altcoin dip to a low of $1,626.
However, there is one gap that ether did not fill. The space opened in March which means it’s almost three months old. As with every one of these phenomena, a price drop to that level will close it. In this case, ethereum may drop to $1,400 or below in response.
When Will the Drop happen?
Following the significant gains last week, the value of the asset under consideration is relatively stagnant. It has been trading within a pattern for the past four days and still maintaining at the time of writing.
During this period, ETH formed fresh short-term support at $1,860. A few hours to the time of writing, it retested but rebounded. This was the major trend. To the top, the largest altcoin made several attempts above $1,920. This happened three times in the last four days with all three finding success. However, all trials stopped close to $1,940 as the coin lost momentum.
The current price movement is one to pay attention to as this is an indication of an impending major move.
On the daily chart, indicators are silent as to the next price actions as they display no new trend. However, the weekly chart hints at the resumption of the previous uptrend. The Moving Average Convergence Divergence on this scale shows an impending bullish divergence which also points to further price increases.
On the other hand, price movement suggests an end to the bullish round as the Relative Strength Index moved around 60 for the majority of the past four days.
Due to discrepancies in metric readings, it is hard to draw a definite conclusion as to when ethereum may fill the highlighted CME gap. Nonetheless, previous drops to $1,400 from the current price were gradual. Let’s see how price play out in the next few days.
Your crypto deserves the best security. Get a Ledger hardware wallet for just $79!