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What is Ethereum (ETH) Doing?
Ethereum has done quite well in the past week, but for the last couple of days, its price is dropping consistently. Let’s take a look at some of the key levels to understand whether Ethereum is still bullish in the short term or not.
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On the hourly time frame, Ethereum is currently trading above the support region at the $2020 mark, which was previously our resistance.
However, the support is being retested again and again, and it is not the ideal entry for a long-trade. In order to turn bullish, Ethereum will have to move towards certain levels to show confirmation.
Ethereum (ETH) Bullish Scenario
Ethereum is already testing the support at its lower-low on the hourly time frame and would have to break above the minor below $2050 region to make a further move.
However, the break of this level would still not be a bullish confirmation. ETH is also facing volume resistance at $2126, as we have previously seen dumps at this level.
Ethereum will have to break above this level, retest it, and move towards the next price target of $2275. The retest of this level could be a nice entry for a long-trade.
From another perspective, Ethereum is also forming a descending channel, and that can give us an excellent long-entry position into the trade. A descending channel is bearish in the short-term, but a break above that channel can be a bullish indicator for Ethereum.
Ethereum (ETH) Bearish Scenario
ETH is failing to hold the line at the $2043 level and is consistently retesting it. After updating local highs, it has failed to maintain its position, and a price drop is expected.
If the break happens, we can see the price move towards the $1960 region or even all the way down to the $1816 region.
The move towards the $1960 wouldn’t be the worse thing for Ethereum and will be a good buying opportunity. If the price does not hold that level, the $1816 region can be the perfect entry for Ethereum.
Also, the downward channel on the hourly chart is still in the play, and the price is likely to fall before it moves up again. The next retest of the bottom channel could be a good entry for a long-trade on ETH.
Conclusion: Is Ethereum Bullish or Bearish
Ethereum is still bullish in the long-term, but in the short-term, the price seems to be moving downwards.
ETH is currently struggling to hold support and is trading within a downward channel. The price of BTC is also moving towards the downside at the moment, and all signs point that Ethereum is bearish in the short term.