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.
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.
ETHUSD Up 12%: Ethereum has seen a remarkable 12% surge over the past week, reflecting bullish momentum in the market.
Bulls Taking Profit: Recent price declines touching the previous swing low suggest that bulls may be taking profit, with key support levels identified between $2472 and $2461.
Bearish Signals Emerge: The appearance of a shooting star candlestick at the peak of the bullish rally, followed by multiple bearish divergence candlesticks, indicates a potential shift in sentiment towards bearish territory.
Weakening Bullish Momentum: The bending of the EMA 50 towards the EMA 200 suggests that bullish momentum is waning, with prices potentially finding support between these key moving averages.
Short-Term Bearish Trend: Breaking below the lower Bollinger band indicates a short-term bearish trend, signaling a likely correction in the market. Bearish signals from both MACD and RSI further support this view, with the MACD signal line crossing below the 0 line and the RSI dropping below 40%.
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