Ethereum has sustained its upward moves within the past three days while compressing within its reversal setup. As the $1,714 mark bears a rebound level for bearish drags, the leading alternative token might hover around its 20-50-200 Exponential Moving Average before dipping into massive volatility.
The current reversal setup might mean higher price rejections (for some time) before possible bull resurge. While publishing this blog, Ethereum changed hands at $1,704.6, gaining 4.1% within the past 24 hours.
Ethereum 4Hr Timeframe
Ethereum resumed its bearishness over the past ten days following plummets beneath its short-term foothold and the 200 Exponential Moving Average. However, its growth within the last three days supported bulls to close beyond the EMA zones. This selling resurgence emerged after Ethereum reversed from a 2-month peak on August 11.
Ethereum witnesses a brief higher price rejection around the $1,714 mark as the bears pose obstacles around the bearish pennant pattern’s upper trend line. Meantime, the alternative token saw its trading volumes on downward trends amidst the latest growth. That has confirmed the bull’s weakness.
A closing beneath the Exponential Moving Averages might trigger a patterned breakdown. Such developments would have possible targets at the POC (Point of Control) at around $1,626. An ultimate break past the resistance at $1,700 might open the road for a short-lived bullish move within the $1,740 – $1,800 range.
The RSI (Relative Strength Index) hovered along the shackles of the resistance of 50 during this publication. An impressive revival from this mark might suggest a buying momentum ease in the short-term. Moreover, the CMF (Chaikin Money Flow) hiked towards the overbought territory.
A possible reversal would match the potential retracements on the ETH chart. Furthermore, the VO (Volume Oscillator) declined during the latest gains, confirming weakness in the ongoing bull run.
Considering the confluence of the bearish setup plus weak indicator readings, Ethereum might witness a brief plunge before embarking on upsides. A decisive close beyond the 20-50-200 Exponential Moving Average would cancel the bearish narrative. Targets would be as highlighted above. Lastly, investors should watch BTC due to the 78% correlation.