In our previous Ethereum analysis ETH At This Key Resistance Again! Can We Break Through This Time? we talked about the Ethereum $1,690 key resistance in the 4-hour timeframe, and how this price level has been a major region the ETH bulls have been struggling to break through since earlier this year.
Well, Ethereum attempted to break through this $1,690 key level again over the weekend and failed, making us wonder if this might be a sign of weakening bullish momentum for the Altcoin.
In this Ethereum analysis, we will be talking about the Bearish Divergence currently forming in the 4-hour timeframe and what this might mean for the Ethereum bulls in the coming days.
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Ethereum Bearish Divergence!
Bearish Divergence shows weakness in price. The bearish divergence is caused when the price is moving higher while the MACD indicator keeps on moving lower. Once this happens, it signifies that the asset might be weak and ready to sell off.
Right now, the Ethereum price is rallying higher, but the MACD indicator is showing a clear sign of a downtrend.
This tells us that “while the price might be moving up, bullish volume is dying down” so sooner or later the price will reverse.
What Now For Ethereum?
We are still very bullish on Ethereum and believe there is a very high probability that we might see the Altcoin rally to $2,014 in the coming days. However, the Ethereum price is looking a bit overextended to the upside.
There is a very high probability that we might see Ethereum pull back a bit in the coming weeks before we finally see that bullish rally resume.
But even with this current bearish divergence and a possibility for a price pullback soon, we are still bullish on Ethereum and believe the rally is far from over!
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