Ethereum (ETHUSD) is trapped in a monthly range, capped below the 2,125 ceiling – which also lines up with the 78.6% Fibonacci retracement of the April-August rally – even as the geopolitical drama in the Middle East unfolds.
After wiping out all of last year’s gains, traders are left wondering: is the next bullish rotation just around the corner? The RSI seems to be showing a bullish divergence, gradually forming higher highs and higher lows while the price drifts sideways, and the MACD is pointing slightly positive, suggesting the bulls haven’t completely packed up yet. That said, the second most popular crypto could also be stuck in a classic bearish rectangle – a formation that usually breaks lower.
A decisive close below the 1,850 floor could send the price sliding towards the lower edge of the bearish channel at 1,485, and possibly down to last year’s floor at 1,382. If the bears stay in control there, the next stop could be the November 2022 support around 1,100.
On the flip side, if the bulls manage to pierce through the 2,125 ceiling, the 50-day simple moving average (SMA) could be the first hurdle around 2,395. Pushing higher, the path could open toward the channel’s upper boundary at 2,730, near the 61.8% Fibonacci level. A break above that could set the stage for a test of the 3,000 round number ahead of the 50% Fibonacci around 3,150.
