Key Highlights:

Ethereum is currently facing healthy consolidation

ETH has been able to break out from the 5-month descending price channel

ETH needs to hold the $154.48 support level

⠀Ethereum price: $165.5 ⠀Key ETH resistance levels: $169.33, $170, $171.05, $179.32 ⠀Key ETH support levels: $154.48, $156.53, $163.02, $164.31

*Price at the time of writing

Ethereum has been facing healthy consolidation this past week after a significant mini bull run to $179.32. The digital asset started consolidating soon after and continued trading in a small downtrend until the bulls were able to defend the daily 26-period EMA located at $154.48. Ethereum was able to bounce back, surging by more than 9% over the last 4 days.

The overall daily trend remains positive and the bulls are now looking to break the high of $179.32 to continue with the uptrend.

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What has been going on?

Ethereum has been trading within a descending parallel channel for quite some time now, around 5 months. The bulls were finally able to break above the channel almost 2 weeks ago with increasing bullish volume and a 15% surge in just one day. Ethereum has been able to continue trading above the top line of the descending channel and must remain above it. Right now, the biggest resistance faced by Ethereum is the high of $179.32 set a week ago.

Ethereum price short-term prediction: Bullish

Ethereum has been in a daily downtrend for around 6 months, but 2020 has proven to be a great year for the digital asset so far. The bulls were able to confirm a daily uptrend pretty much at the beginning of the year and they have continued to support it with increasing bull volume.

The short-term is clearly bullish for Ethereum and the next step is to break above the recent high and continue with the uptrend. The key support to hold is at $154.48. If Ethereum breaks below this level, we could see a reversal of the current trend.

Where is the resistance toward the upside?

The 4-hour chart has created a clear resistance level at $169.33 and there is another resistance nearby at $169.9 (weekly 26-period EMA). The latter has proven to be a tough resistance for the bulls who have attempted to break above it 3 weeks in a row unsuccessfully.

The biggest resistance, as stated above, is the high of $179.32. Ethereum will need to control the 4-hour chart again in order to break above this resistance as it would currently mean an 8% price increase.

What are the technical indicators showing?

The daily RSI level has been quite high for the past two weeks. Ethereum has been able to cool it off a little bit during this consolidation, however, it is still currently at 61 points and it could prevent the bulls from seeing further gains. It’s important to note that the RSI level can get extremely overextended and it’s not always a decisive factor.

ETH is trading above the 12 and 26-period EMA on the daily chart and both EMAs have crossed bullishly back on January 9. The trading volume has been slowly decreasing every day, signaling that a significant move will happen soon.

Previous ETH price analysis

At CoinCodex, we regularly publish price analysis articles focused on the top cryptocurrencies. Here's 3 of our most recent articles about the price of Ethereum: