Ethereum’s price has been undergoing corrections following its rally in the last few months, but the short term outlook is supported by several key levels.
The Daily Chart
Examining the daily timeframe, the price has been decreasing for several weeks after failing to reach the $2200 resistance level. The 50-day moving average is currently holding the market around $1900, while $1800 is providing additional support.
If the price bounces back from this area, a rapid rise towards $2200 could occur. Conversely, a breakdown would result in further correction towards the 200-day moving average at around $1600. The RSI continues to oscillate around the 50% mark.
The 4-Hour Chart
On the 4-hour chart, the price appears to be attempting to break out of the range between $1800 and $1900. $1900 is currently being tested once more, and a bullish breakout could pave the way for a surge above $2000.
However, another rejection could initiate a bearish movement towards the $1800 support level and potentially beyond. The RSI indicator is trending above the 50% mark in this timeframe, indicating that the bulls are in control and a bullish breakout is more probable.