Ethereum price has corrected over the past 24 hours, followed by a consolidation at the $1,800 price mark. During the last week, ETH registered a growth of 20%. It has been a bullish week for the King altcoin. The last time altcoins traded around this price level was about two months ago.
It failed to rise above the $1,900 area and rebounded shortly thereafter. The strong support line for the Ethereum price was at $1,600. The Ethereum price could see a sharp change once the Ethereum merge goes live next month.
Merge The transition from Proof-of-Work to Proof-of-Stake has been a much-awaited event for the Ethereum community. This change from Proof of Work will reduce the power consumption of altcoins by about 99.5%. If the price of Ethereum manages to stay above the $1,900 mark for a substantial period, the coin will manage to touch the $2,000 price range.
Ethereum Price Analysis: Four-Hour Chart
At the time of writing, ETH was trading at $1,918. The coin eventually managed to move beyond the $1,800 price zone. Ethereum price will have to maintain momentum above the $1,900 mark to touch the $2,000 price mark.
The coin had overhead resistance at $1,970. Local support levels for the token were at $1,700 and then at $1,600 respectively. If ETH loses strength and falls to the $1,600 mark, the inability to stay at that price level could push the coin to $1,300. Ethereum traded volume was falling in the previous session, which meant that selling pressure was waning at the time of writing.
The technical outlook for the altcoin is showing bullish momentum on the four-hour chart. Buying power for Ethereum also increased as the price of Ethereum moved upwards on its chart. The relative strength index was traded above the 60-mark, indicating that buyers were dominating the market at press time.
If the demand for ETH continues to increase, the altcoin could be valued higher, which could lead to a price drop. Ethereum price traded above the 20-SMA line, which meant that buyers were driving the price momentum. The altcoin was also above the 50-SMA line which indicates a rising price of the asset.
Other important indicators of ETH are also reflecting positive price action. Moving Average Convergence Divergence should reflect that price movement and reversal in that. MACD witnessed a bullish crossover and flagged above the halfway line registering a buy signal for the asset.
The Directional Movement Index is responsible for determining the direction of the price of Ethereum. The DMI was positive as the +DI line was above the -DI line. The Average Directional Index (red) was in the 40-point range, which meant that the current price direction was consolidating.