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ETHEREUM PRICE ANALYSIS CMP-$1,635: Bulls are keeping a close eye on breakout of rounding bottom pattern

The Ethereum price is currently trading at $1635, representing a 37% increase from its January 1st low. However, this week's trading volume activity has indicated that the bullish momentum is gradually fading.


23 Jan 2023 By : Coin Gabbar
ETHEREUM PRICE ANALY

The ETH price is testing the neckline resistance near $1660 of a rounding bottom pattern. However, the daily chart reveals a Doji candle, indicating a lack of consensus among market participants. This could be a sign of a potential breakout, as investors remain uncertain of the cryptocurrency's future trajectory.

Ethereum surged past $1,620 against the US Dollar, consolidating its gains and potentially aiming for another rally towards the $1,720 level. After Ethereum price began a steady climb above the $1,500 resistance zone, it gained momentum and broke through the $1,600 resistance zone, similar to Bitcoin's surge to $22,000.

The bulls pushed the price even further, above the $1,650 level and the price settled above the 100 hourly simple moving average. This surge resulted in a new yearly high of $1,679, before the price began to correct its gains. There was a minor dip below the $1,650 level, but the bulls remain in control.

The price of Ethereum recently dipped below the 23.6% Fibonacci retracement level of the upward move from the $1,480 swing low to the $1,679 high. Additionally, there was a break below a key bullish trend line with support near $1,630 on the hourly chart of ETH/USD. Despite this, the price is currently trading above $1,600 and the 100 hourly simple moving average, indicating that the bulls are still in control.

An Immediate resistance is found near the $1,650 level and the broken trend line. The next major resistance is located at the $1,680 level. If the price breaks above this resistance zone, it could trigger a new surge in the market. In this case, the price could potentially rise towards the $1,720 resistance. Further gains could potentially push the price towards $1,788 or even $1,800 in the near future.

If Ethereum fails to break through the $1,650 resistance, it could continue to decline. An initial support level is located near the $1,600 mark. The next major support is near the $1,580 level, which is also the 50% Fibonacci retracement level of the upward move from the $1,480 swing low to the $1,679 high. If the price drops below $1,580, it could test the $1,520 support. Further losses could lead to a test of the $1,480 zone.

According to price analysis, the market capitalization of Ethereum is estimated to be around $200 billion. Its 24-hour trading volume is approximately $7 billion, indicating a 0.36% increase in market capitalization and a 19.18% decrease in transaction volume during intraday trading. This suggests that Ethereum is continuing to grow in value, despite a slight decrease in trading activity.

KEY LEVELS :

RESISTANCE LEVEL : $1,670-$1,710

SUPPORT LEVEL : $1,600-$1,560

As Ethereum continues to hold its ground above the $1,600 mark, many investors are wondering if this could be the start of a new bull run that could take the ETH to the $2,000 level in the week ahead. We'd love to hear your thoughts in the comments section below.

WHAT'S YOUR OPINION?

EPNOC