Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
Ethereum has been consolidating below the $2600 level for the past week and three days ago the price broke above this level to test the next resistance zone at $2800. It has been rejected at the time of writing, but probably not for long. Aside from the price charts, it was noted that Ethereum rollups could see slow adoption rates and an unsatisfactory user experience. In addition to the price decline in the past three months, daily number of transactions on the network there is also a slight decrease from about 1.22 million to 1.15 million.
ETH-1H
Source: ETH/USDT on TradingView
The long-term trend for Ethereum has been bearish. However, since late February, the price has formed a series of higher lows since mid-November and also a series of lower highs. This was a symmetrical triangle pattern (yellow) in which the price has been trading for the past few weeks.
Between these two trendlines and the combination of higher low and lower high, ETH has seen some compression in recent weeks. This indicated that some volatility could be expected before a breakout in one direction.
In the short term, ETH could find support near $2760 and $2680. A move outside the symmetrical pattern could set the trend for the coming weeks.
rode
Source: ETH/USDT on TradingView
In which direction would such an outbreak go? The RSI was back at neutral 50 at $2830 after the rejection. This was the hourly chart, so it was short term. The rise from $2520 to $2800 in the span of two-and-a-half days means that bulls have generally shown strength in the market. The OBV also rose in response to the buying volume.
The DMI has shown a strong upward trend in recent days, but at the time of writing, the ADX (yellow) and +DI (green) were both on the cusp of falling below 20, showing that there is no strong trend on the horizon. the hourly chart.
Conclusion
It was difficult to be sure of a direction for the next move. The string of higher lows suggests buyers are gaining momentum, and a $2760 or $2680 retest could present a buying opportunity. On the upside, the $3200 represents attractive liquidity that ETH could be attracted to. The longer term trend remains bearish so rejection and a $3200 drop could materialize.