Ethereum (ETH) price has failed to hold above the $660 level and the price has retraced to $650 erasing the last day’s gains. Ethereum faces resistance in leaving the $650 level as the price action fails to maintain a foothold above the $660 level.
The broader cryptocurrency market sentiment has also turned bearish as most major cryptocurrencies, including Bitcoin, observe a decline since the day’s opening. However, while the market sentiment has turned bearish, the net negative movement has been low, and most cryptocurrencies have recorded a loss below 5 percent
Despite starting the second half of 2020 with relatively low volatility, ETH has observed its share of volatility across the period. Ethereum price opened July at $225.50 with little market momentum as the price continued to hover at the level until the latter part of the month. On July 22, the price action broke above the $250 level and has not revisited the level ever since.
The bullish momentum continued until the start of August as the price rose to $400 before facing bearish pressure. While the price saw a net increase across the month, the period saw high volatility as the price oscillated with wave-like bearish activity marking the charts.
Ethereum price had a rocky start to September as the price declined from $475.57 to $335.25 within the first five days of the month. Later the price declined to $320.63 before finding a strong foothold to start a trend reversal.
Between October and mid-November, the price moved in an ascending channel with steady bullish movement raising the price to the $500 mark. On November 20, the price broke above the $500 level with sharp bullish momentum as the price rose above the $600 mark in the next five days. However, the price failed to maintain support at the level and declined back to the $500 support level.
The market sentiment remained bullish as Ethereum price made a V-shaped recovery before declining to $535. However, the bulls were not done yet and the price rose again to challenge the $600 resistance level. This time, the price action succeeded in maintaining support above the level and continued climbing above. Subsequently, the price rose to the $650 level where it currently hovers.
Across the technical indicators, the Bollinger Bands are expanding suggesting room for further upwards movement. Similarly, the RSI has returned to neutral and suggests room for upwards movement as the indicator remains below the 70.00 level. Meanwhile, the MACD shows declining bullish momentum as the two EMAs appear to be converging after the retracement. Overall, the technical indicators are issuing buy signals across the 1-day frames.
As such traders should expect Ethereum price action to continue its upward movement after a brief consolidation at the current level as the price stabilizes. However, if the price falls below $640, ETH may return to the $600 mark.