Ethereum ($ETH ) Trapped
Ethereum is stuckA narrow ascending channel that has been gradually pushing prices higher is the tight and distinct trading pattern that Ethereum is displaying. Despite its initial bullish appearance, this is beginning to feel like a trap. ETH is currently trading at about $2,690 with resistance close to $2,850 and support at the $2,500 mark. ETH has been steadily rising as the channel itself has been developing for a few weeks. A breakout is not exactly supported by the volume profile, though.

Actually, over the past week volume has been gradually dropping, which suggests that traders are not very confident. Because it raises the possibility that the current channel is running out of steam, this decreasing volume is concerning. We may witness a brief decline to the $2,400 region if ETH breaks below this channel’s lower trendline; if that does not happen, $2,100 is the next reasonable target.

However, it might also mean that the market is finally waking up and getting ready for another leg higher if ETH is able to break through the $2,850 barrier. Not to be overlooked is the larger context.

Although the 50 and 100 EMAs are displaying some compression around the current price levels, ETH is still recovering from a protracted and agonizing downtrend. The market is waiting for a significant event to occur, which is a classic indication of indecision. ETH is currently trapped in this channel, but it will eventually break free. Pay attention to those critical resistance and support levels. ETH will probably set the tone for the next significant move once it exits this channel either upward or downward.
#ETH