Ethereum for the last 5 days [ETH] We saw a resurgence of the $ 1,049 zone from the one-month demand zone. Recent green candlestick streaks have replaced ETH with short-term bullish controls.
Consistent recovery efforts undertaken by buyers have helped ETH break 38.2% and 50% Fibonacci-level bonds.
As this phase progresses, potential rebounds from the Golden Fibonacci level may ease immediate buying pressure. At the time of the press, ETH was trading at $ 1,471, up 8.02% in the last 24 hours.
ETH 4 hour chart
Source: TradingView, ETH / USD
ETH’s Bollinger Bands (BB) revealed a one-sided bullish edge while prices were hovering near its upper band. The alt above the BB baseline (green) opened the doorway for this rapid recovery.
In the previous declining stage, ETH lost more than half of its value in just nine days (from June 10th). As a result, Alto was drawn to the 17-month low on June 19.
However, the Bulls quickly secured a demand zone of $ 1,049 and pushed the upchannel (yellow) revival in a four-hour time frame. On the other hand, 20 EMA (red) is higher than 200 EMA (cyan), reflecting the rise in bullishness.
Rebounds from the 61.8% level help bears retest the $ 1,390 mark. Failures from the upchannel could further drive a retest of the north-facing 20EMA, perhaps before it recovers.
The rationale
Source: TradingView, ETH / USD
The Relative Strength Index (RSI) occupies an overbought position in this time frame. The possibility of a reversal from this level confirms a short-term easing of purchasing power as the index rises towards the 80 mark.
Volume oscillators (VOs) also marked a low peak during the recent rise, confirming a bearish divergence with prices. In addition, the CMF has drawn a similar trajectory to confirm this difference.
Conclusion
With a hurdle of 61.8% level in addition to the bearish divergence of the indicator, ETH may see a short-term slowdown before recovering again. The target remains the same as above.
Finally, investors / traders need to be aware of Bitcoin’s movements. This is because ETH shares a whopping 81% correlation with Kingcoin in 30 days.
