Bullish Divergences On Ethereum Chart, What’s Incoming?

Ethereum

The Ethereum price is trading laterally on its daily chart. The coin has moved south by 1.8% in that timeframe. Both the bulls and bears are trying to take over the market as the altcoin remains within a congested price zone. If the altcoin price is rejected at higher levels, the chance of a reversal might increase.

This would mean that bulls represented an upper hand. Moving sideways, however, will bring the asset close to its local support line of $1,220. The current technical outlook indicates that the bulls have not exited the market. If the bulls remain in the market, a breakout above the $1,300 price mark can be predicted.

In the event of continued consolidation, the chance of a move upward cannot be completely ruled out. The significant recovery often allows the traders to replenish their losses before the altcoin starts to trade southward.

Traders might be presented with an opportunity to enter the market at $1,220 before ETH attempts to revisit the $1,300 price. Ethereum is trading at a price nearly 74% below its all-time high secured in 2021.

Ethereum Price Analysis: One-Day Chart

Ethereum was priced at $1,251 on the one-day chart | Source: ETHUSD on TradingView

ETH was exchanging hands at $1,251 at the time of writing. The coin has been swaying between the $1,220 and $1,300 marks. However, indicators have continued to side with the bulls as buyers have shown interest in the asset.

Overhead resistance for the Ethereum price was at $1,260. After breaking through that barrier, the coin will face a new one at $1,300. On the flip side, falling from the $1,251 level will drag the altcoin to $1,200 and then to $1,170. The amount of ETH traded in the last session declined slightly, indicating some loss in buying strength.

Technical Analysis

Ethereum registered a fall in buyers on the one-day chart | Source: ETHUSD on TradingView

The chance of Ethereum registering an uptick increases owing to the several bullish divergences on the chart. Bullish divergences are tied to the coin picking up momentum. The Relative Strength Index also spotted a bullish divergence, indicating that buying strength could get stronger.

The RSI was just above the half-line, meaning buyers were more than sellers on the chart. The Ethereum price was spotted slightly above the 20-Simple Moving Average Line. This denoted that buyers were still in charge of driving the price momentum in the market.

Ethereum displayed a buy signal on the one-day chart | Source: ETHUSD on TradingView

Other technical indicators for the altcoin continued to exhibit buying strength. The Moving Average Convergence Divergence portrays that price momentum continued to form green signal bars.

The green histograms were the buy signal for the coin, which could further mean an entry point for traders. The Chaikin Money Flow (CMF) indicates investor interest by capturing capital inflows and outflows. CMF was positive as it was above the half-line, meaning capital inflows exceeded outflows.

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