ETHUSD has experienced a notable 12% surge over the past week, reflecting a bullish sentiment in Ethereum's market. However, recent price declines touching the previous swing low around $2472 suggest that bulls may be taking profits, with key support levels identified between $2472 and $2461.
Bearish signals have emerged, notably with the appearance of a shooting star candlestick at the peak of the recent bullish rally. Subsequent bearish engulfing candlesticks further indicate a potential shift in sentiment towards bearish territory.
Adding to the cautious outlook, the EMA 50 has started bending towards the EMA 200, signaling a weakening of bullish momentum. This suggests that prices may find support somewhere between these key moving averages.
Furthermore, the break below the lower Bollinger band indicates a short-term bearish trend, possibly signaling a corrective phase in the market. This sentiment is echoed by both MACD and RSI indicators, which have turned bearish. The MACD signal line crossing below the 0 line and the RSI dropping below 40% confirm the bearish divergence, indicating a higher likelihood of downward price movement.
As ETHUSD navigates these shifting market dynamics, traders should remain vigilant and monitor key support levels and indicators for potential trading opportunities.
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