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There are two key events happening right now on the Ethereum price chart. And this confluence of events is indicating that we might be seeing the Ethereum price sell-off come to an end very soon.
In this Ethereum analysis, we will be breaking down what these key events are and how they can affect the Ethereum price trend in the coming days.
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Event 1: Ethereum Trading At Key Level
The Ethereum price has found support at the $1,715 key support level in the Daily timeframe.
This key support is very important to the ETH bulls because the last bullish rally that drove prices to the $4,874 ATHs originated from this major level in the daily timeframe.
So, there is a very high probability that if this key support continues to hold, we might see the Ethereum bulls repeat this kind of massive rally in the coming days.
Event 2: Price and MACD Bullish Divergence.
Bullish Divergence shows strength in price. The bullish divergence is caused when the price is moving lower while the MACD indicator keeps on moving higher. Once this happens, it signifies that the asset might be building strength and getting ready to rally higher.
Right now, the Ethereum price is selling off, but the MACD indicator is showing a clear sign of an uptrend.
This tells us that “while the price might be bearish for now, bearish volume is dying down” so sooner or later the price will reverse.
In the coming days, we will be keeping our eyes on this MACD bullish divergence with price to see how it develops and if it will play out.
The image below is what a completed bullish divergence may look like. So if the Bullish Divergence on Ethereum were to play out we expect to see this kind of price action.
Final Verdict!
We believe the Ethereum move down might already be over-extended. And right now we are seeing two bullish price confluences that suggest this might be true.
The question now is can the bulls take back control of the Ethereum trend and begin to push the ETH price back up? As the days go by, we will keep on watching the price development closely and keeping you up to date on what we believe might be the best price scenarios for Ethereum.
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