Ethereum has recently flashed a bullish signal by finding support at the 100-day moving average of $1791 and experienced a spike in its price. Also, it has now encountered a crucial resistance level, and surpassing it would likely trigger another surge.

Technical Analysis

By Shayan

The Daily Chart

Ethereum had a period of steady price action around the 100-day moving average of $1790 before finding support and proceeding upward.

However, during the recent consolidation correction phase since mid-April, the price formed a descending wedge pattern (marked by yellow).

Presently, the price has reached the upper boundary of the wedge at $1.9K due to its recent surge and is on the verge of surpassing this critical level.

Ethereum’s price is currently confined within a narrow range, between approximately $1791 and the static resistance zone of $2K. A breakout from the wedge is likely to trigger another rally toward the $2K resistance zone.

The 4-Hour Chart

Zooming in on the 4-hour chart, we can identify three crucial price regions: the static resistance at $2K, the dynamic resistance of the ascending channel’s trend-line midpoint, and the static support at $1710.

Based on the current price action, the price seems more likely to continue its upward trend toward the $2K resistance and attempt to break out. However, considering the current market conditions and the prevailing uncertainty among participants, it is also likely that a consolidation phase between the $2K resistance and the $1710 support regions will take place.

On-chain Analysis

Price fluctuations in the market result from the dynamic interplay between supply and demand forces. Demand plays a crucial role among these forces, and closely monitoring market participants’ behavior is critical to assessing the existing demand.

One effective way to gain insig