The bulls might help Ether reach USD 1,300 if the price remains above USD 1,240 and USD 1,250. There is a possibility of price and volatility fluctuation, showing that ETH might trade in a range soon.
The price of Ether (ETH), the cryptocurrency of the Ethereum network, has moved alongside the overall crypto market. It has risen by 2.5% over the last 24 hours but has barely moved over the past week, reflecting sideways trading.
Although the altcoin might achieve gains in the short term, technical data indicates it might depreciate again before recovering. The chart shows that there has been considerably low accumulation. To break above the USD 1,300 mark, Ether needs to increase its buying activity significantly.
The daily chart shows that the buying force has been weak, although ETH has remained stable above USD 1,220. To reach USD 1,300, Ether must continue trading above USD 1,240 and USD 1,250.
If the price drops below USD 1,240 and closes around USD 1,230, the bulls will lose strength, further fueling a rebound to USD 1,300. Investors should pay attention to what happens to know when to buy.
The Daily Analysis of the Price of Ether
Ether is trading at around USD 1,275 and has accumulated a 2.5% gain over the last 24 hours. While its daily trading volume is above USD 4.73 billion, its market capitalization is about USD 152.75 billion, according to CoinGecko.
The second-largest cryptocurrency by market capitalization has consolidated after changing its USD 1,240 support level. Since the immediate resistance for ETH is at USD 1,290, the price might experience a setback at that level.
However, the value of Ether must remain above the USD 1,250 mark to avoid suffering a significant loss. Therefore, the bulls should continue defending that level against the nearest support line.
The slight decrease in the amount of ETH traded indicates a drop in the number of buyers in the market. The collapse of FTX may have caused fear among cryptocurrency investors, leading them to remain distant.
The Technical Analysis of the Price of Ether
In line with the lower number of buyers, the technical analysis indicates a similar outlook for the price. Although the Relative Strength Index (RSI) was above the midline, it remained weak as the daily chart showed a drop.
That reading correlates with a drop in Ether demand and accumulation. Contrariwise, the price was above the 20-day SMA, showing that ETH was in the hands of buyers.
The Moving Average Convergence Divergence (MACD) reflected the same sentiment as buyers, who controlled the price. That indicator shows price movements and trend changes, displaying small green signal bars linked to the ETH buy signal.
However, the height of the signals decreased, indicating a drop in the demand for Ether. According to Bollinger Bands, there is a possibility of fluctuation of price and volatility in the market. That indicator remained parallel, showing that ETH might trade in a range in the coming days.
By Alexander Salazar
