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The Ethereum bulls have tried again and again to break through this $1,690 major resistance in the 4-hour timeframe and failed! What is happening, are the bulls losing steam, should we be expecting selling pressure to come into the market from this region soon?
We will be talking about all these and more in this Ethereum analysis. We will also be breaking down the key support region the bulls must defend at all costs in the coming days.
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What Is Going On With Ethereum?
One thing we know for sure is that the bulls are trying to hold on to control of the market. However, try as they may, they have not been able to still push the ETH price above the $1,690 key resistance level.
This level is very important as it was the only thing that stopped the initial Ethereum price rally earlier in January of this year. And until it can be broken, the ETH bullish rally is effectively over.
What Needs To Happen For Ethereum To Break Through This Level?
The reason why the Ethereum price might currently be finding it very difficult to break through this $1,690 key resistance is that “the fundamental landscape for the economy is still a bit bearish.”
The Federal Reserve is still adamant that inflation is too high and it plans to continue increasing interest rates. This increase in interest rate takes momentum from the stock market and the crypto market as investors are more likely to move money into less risky assets.
So this current struggle at the $1,690 key level might be the way the market is expressing the effects of this slowdown for Ethereum.
Is There A Possibility For Us To See Prices Reverse?
Right now, the most important level to watch for that is the $1,607 support region in the 4-hour timeframe.
We have seen the Ethereum price breakdown and continue selling off every time it has managed to break through this key support.
So we know there is a very high probability that if the ETH price breaks below it again in the coming days, we might see history repeat itself on the Altcoin as it pushes lower.
However, that is still yet to happen, so we will be keeping a close eye on this $1,607 support region to see if the ETH bulls can continue to defend it.
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