Following the rally that took place in the past week, eth appears to be in an intraday position for further gains. However, the potential flag that was probably observed by other crypto traders may be sending ambiguous signals.
Click on the chart to enlarge:
ETHUSD 4hr Chart 21/02/23
The 4hr chart is suggesting a bullish flag is being painted. The price has been held in a range inside the flag. The corrective gains off the support may indicate a resumption of the uptrend is due.
As appealing as it may be, our concern is with the accumulating stops beneath the support line. A firm break may be required (outside the flag) to affirm further gains in the cryptocurrency.
The hourly resistance at $1,690 may be used for a firmer signal if the price is able to successfully break above.
The 100% objective of the bullish flag (if affirmed) is $1,900 based on technical analysis.
ETH Pattern Invalidation
In an event the bullish is invalidated and the price breaks below the support, we will attempt to provide a potential level where the weakness may begin weakening.
Click on the chart to enlarge:
ETHUSD 4hr chart price level
Based on intraday timeframes, $1,505 may be the region to keep Ethereum afloat in an event heavy selling materialize.
The FOMC Minutes, due later this week may contribute to the above scenarios presented in our research. At the time of this writing, firm buying and selling pressure in Ethereum is well-reflected across other tokens within the blockchain space.
The next risk event for Ethereum is the Shanghai upgrade in March 2023. Despite various opinions that no significant impact will be seen, in an event ether spikes higher due to the upgrade, holders may look to liquidate.
The impact of mass liquidations that may follow may bring eth to levels since prior to the recent rally. We will be looking for any irregular price movements (possibly due to position squaring) prior to the upgrade.
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Last Updated on February 21, 2023