Greetings! In this article, I will go over my technical analysis I did today and explain what indicators were notable and future potential scenarios of the Ethereum price action.

Rally or Dump?

During the past couple of weeks, Ethereum has been trading within a downtrend. Only recently did it begin to recover and form an uptrend. However, while this may be bullish, there are arguments on both sides that indicate either a rally or a dump in the coming days.

4-hour time frame:

In the 4-hour time frame, the RSI is still well over the overbought territories. The MACD is also still strongly overbought as well (However, the bearish cross forming yesterday was invalidated). While this does indicate a potential dump within in the near future, since the MACD is still printing strong green bars, it is likely that Ethereum might have some more ways to go.

24-hour time frame:

In the 24-hour time frame, the RSI is approaching overbought territories and the MACD is still within a strong bullish channel with strong green bars. This does help provide evidence (to the conclusion on the 4-hour time frame) that Ethereum may have more ways to go. Furthermore, Ethereum did breakout of the daily 20 and 50 EMA resistance levels. However, with Ethereum approaching the trendline resistance of the descending channel that Ethereum is currently in, it is possible that Ethereum will get rejected from that point and form a lower low. However, if Bitcoin keeps rallying, it is possible that Ethereum will breakout of the descending channel and form higher highs.

Weekly time frame:

In the weekly time frame, the RSI is still within the RSI resistance (but still neutral) and the MACD is still forming a bullish cross (With lighter red bars being printed). Despite the MACD being bullish, it is still important to point out that Ethereum is still under the 20 and 50 EMA resistance levels. However, due to the MACD being bullish, Ethereum might obtain the much-needed momentum to breakout of the 20, 50 EMA resistance levels along with the descending channel.

Conclusion:

In conclusion, Ethereum looks somewhat bullish (Due to the weekly MACD and 24-hour indicators) with a chance of a breakout from the descending channel, it is still possible that Ethereum might seek lower price targets.