$ETH A bullish engulfing pattern on the weekly timeframe suggests buyer momentum, but confirmation requires a close above $1,800.
Technical Indicators
Moving Averages:
50-day SMA: ~$1,861, currently above the price, acting as resistance.
200-day SMA: ~$2,697, sloping downward, indicating a weak long-term trend.
20-day EMA: ~$1,722, recently reclaimed by bulls, supporting short-term recovery attempts.
Relative Strength Index (RSI):
Daily RSI: ~53.72, neutral, indicating neither overbought nor oversold conditions.
Weekly RSI: ~41.39, suggesting weak momentum but room for recovery if it crosses above 50.
MACD:
The MACD on the 4-hour chart shows a bullish crossover, hinting at short-term upside potential. However, the daily MACD remains bearish, with the signal line above the MACD line.
Volume:
Trading volume is steady but not elevated, indicating cautious investor behavior. Accumulation by whales (130K ETH bought recently) supports a potential reversal.
Bullish Catalysts:
Upcoming Pectra upgrade in 2025 could enhance transaction efficiency and security, boosting adoption.
Institutional interest, including spot ETH ETFs and staking products, may drive inflows.
Layer-2 solutions (e.g., Arbitrum, Optimism) continue to reduce fees and improve scalability, supporting DeFi and NFT growth.
Bearish Risks:
Competition from Solana and other Layer-1 chains could divert developer and user activity.
Macro factors, including trade wars and recession fears, may suppress risk assets like ETH.
A break below $1,750 could trigger capitulation toward $1,500.
Not Financial Advice, DYOR!!
