Ethereum’s imminent bullish breakout may lack momentum to retest major resistance

Ethereum’s imminent bullish breakout may lack momentum to retest major resistance

Over the past week, Ethereum’s price has undergone major consolidation. ETH’s price registered a change of only 0.73 percent and many speculate that the token’s price will enter a major accumulation period. On 4 November, Ethereum recorded an hourly hike of over 2 percent, but corrections quickly stabilized its valuation. Upon analysis, it was observed that bullish traits were evident, but a deficiency in momentum may hinder its price growth.

4-hour chart

The 4-hour chart for Ethereum suggested that ETH’s price movement had given rise to a symmetrical triangle pattern which indicated that a breakout was possible towards both sides of the spectrum. The immediate resistance for Ethereum was placed at $191.01, and the long-term resistance continued to be at $195.07. Ethereum had managed to breach the $200 psychological mark previously, but a lack of momentum indicated its failure to maintain a position above its resistance. The depreciating trading volume should register a hike, once the breakout surfaces on the chart.

The MACD indicator was bullish for ETH at press time, another sign of the possibility of a bullish push.

1-hour chart

The 1-hour chart for ETH pictured the occurrence of a bullish break. A falling wedge pattern was breached at press time, and the price movement of ETH navigated a hike. The decreasing trade volume confirmed the pattern’s validity, but bullish momentum was weak for ETH. The 50-Moving Average moved above the 100 Moving Average, highlighting the bullish nature of ETH.

The MACD indicator suggested that a trend reversal was imminent as the MACD line approached a bullish crossover with the signal line. The price movement on the 1-hour chart raised the possibility of a bullish break on the 4-hour chart, the latter of which conveyed a neutral tone, at press time.

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