- Ethereum pulls back from recent multi-month high
- Generates a structure of lower highs and higher lows
- Momentum indicators suggest that buying interest is fading
ETHUSD (Ethereum) experienced a strong rally since late October, which propelled the price to 2,136, its highest level since April. However, in the past few weeks, the leading altcoin has been trading without a clear direction, with the formation of a pennant pattern hinting at an impending breakout.
Should the pennant break to the upside, the bulls could attack the recent resistance region of 2,090. A violation of that zone could pave the way for the six-month high of 2,136 just shy of the 2023 peak of 2,142. Slicing through the latter, the price may then challenge the 2,200 psychological mark.
Alternatively, bearish actions might encounter initial support at the 2,000 psychological mark. Further declines could then cease at the November support of 1,928, which also acted as resistance in May and June. Even lower, the May support of 1,800 could prove to be a tough barricade for the price to overcome.
Overall, ETHUSD has been trading within a range in the past week, but its technical setup is warning of a potential spike. Meanwhile, the momentum indicators are not giving a clear sign regarding the direction of the upcoming move.