ETH’s Price Will Likely Retrace Before Another Attempt at $1,700

The price of the largest altcoin by market cap, Ethereum (ETH), is up 0.88% over the last 24 hours according to CoinMarketCap. ETH’s 24-hour gain has added to its positive weekly performance, which now stands at +3.96%. As a result, ETH is changing hands at $1,655.88 at press time.

Daily chart for ETH/USDT (Source: CoinMarketCap)

The price of ETH was able to break above the key $1,700 level on 2 February 2023 – setting a daily high at $1,714.68. Talks of ETH rallying were quietened shortly thereafter as ETH closed the daily trading session at $1,643.12.

Now, it looks as if ETH’s price is looking to cross above the $1,700 level again. Two technical indicators support this belief.

The first technical indicator is the daily RSI indicator. At press time, the daily RSI line is positioned below the daily RSI SMA line. Although this is a bearish sign, the margin that exists between the two lines is negligible. This increases the probability of the daily RSI line crossing above the daily RSI SMA line in the coming 24-48 hours – triggering a strong bullish flag.

Momentum also favors ETH bulls currently as the 9-day EMA line is positioned above the 20-day EMA line.

In order for ETH to have a successful chance at breaking above the $1,700 level, its price will need to have a medium-size retracement. This will serve as a liquidity-building move that will give the market the necessary liquidity to break above the $1,700 resistance level.

If ETH’s price does not retrace down to the 20-day EMA line before making a move toward the aforementioned resistance level, then the next attempt at flipping the resistance level into support will fail once again.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

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