ETH Bulls Aim at $2K But is a Retest of $1.8K Coming First? (Ethereum Price Analysis)

Technical Analysis

The Daily Chart

After a period of correction and a significant downtrend, the price reached the $1.6K level, which coincided with the 200-day moving average and found support. The significant buying pressure at this level triggered a rapid reversal and an upward trend toward the critical resistance zone around $2K.

Additionally, the price surpassed the 100-day moving average at $1.8K, suggesting a bullish bias for Ethereum in the mid-term. However, to confirm the presence of a bull market in 2023 and restore sufficient demand to the market, Ethereum’s price still needs to overcome the substantial resistance at the $2K region and consolidate above.

Source: TradingView

The 4-Hour Chart

In general, the Fibonacci retracement tool is helpful for identifying potential reversal points and correction targets during impulsive trends. As previously mentioned, Ethereum’s price experienced a mid-term correction phase after reaching the yearly high of $2.1K through an impulsive uptrend.

Examining the chart reveals that the bearish correction leg found support and reversed at the 61.8% retracement level, a commonly observed target for correction phases. The prevailing buying pressure within this critical range resulted in a robust bullish trend towards the $2K region.

If the price successfully surpasses the significant resistance around $2K, it will pave the way for a mid-term bullish trend, as this level holds psychological significance. However, it is worth considering the bearish divergence between the price and the RSI indicator, which suggests the possibility of a slight rejection and short-term consolidation before Ethereum makes its next move.

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Author: CryptoVizArt

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