Ethereum’s
price faced significant pressures due to the recent regulatory crackdowns and
the more hawkish expectations on interest rates. However, despite these
challenges, the cryptocurrency displayed remarkable resilience and made a
strong comeback once the market’s hawkish sentiment subsided, and regulatory
concerns eased. Additionally, the recent robust recovery from a critical
support level hints at the possibility of further upward momentum, potentially
leading to a breakout of the 2100 high.

Ethereum Technical Analysis
– Daily Timeframe

On the daily chart, we can see that Ethereum has
recently bounced back from a strong support at the
1681 level where we can also find the 61.8% Fibonacci retracement level
and the upward trendline. Since
then, the price rallied strongly into the downward trendline and now the
formation looks like a descending triangle pattern.

The price can break on either side of the pattern
and generally what follows is a strong move in the direction of the breakout.
So, if the price breaks to the upside, we can expect Ethereum to reach again
the 2000 level, while if it breaks to the downside, we should expect a fall
into the swing low level at 1400.

Ethereum Technical Analysis
– 4 hour Timeframe

On the 4 hour chart, we can see that the rally is
getting a bit exhausted as depicted by the long candlestick wicks near the
trendline. This should be a sign of an imminent pullback and the likely support
zone would be at the 1775 level. In fact, we can see that the price has reacted
to that level multiple times in the past weeks and for more confluence we have
the upward trendline and the 38.2% or 50% Fibonacci retracement level.

The price is also a bit overextended as shown by
the distance between the price and the blue 8 moving average. In such
instances, we can generally see some consolidation or a pullback into the
trendline before the next move.

Ethereum Technical Analysis
– 1 hour Timeframe

On the 1 hour chart, we can see more
closely the support zone at the 1775 level with all the confluences mentioned
above. If we get a pullback into the zone, the buyers are likely to lean on it
with a defined stop just below it and target the breakout of the major downward
trendline to reach the 2000 level. More aggressive sellers can lean on the
downward trendline to target the support zone first and a break lower
afterwards, while more conservative sellers should wait for the price to break
below the upward trendline to target a breakout of the 1681 support that would
open the door for a selloff into the 1400 level.

Today, we have the Fed
Chair Powell testifying to Congress and if he sounds very hawkish, we should
expect the above-mentioned pullback to play out. Tomorrow we will see the US
Jobless Claims report, while on Friday we conclude the week with the US PMIs.

See also the video below:

This article was written by FL Contributors at www.forexlive.com.