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.

Breakout towards 1.8k?

During the past couple of days, Ethereum has been in a strong rally towards the upside. It began from 1.55k and now it has crossed the 1.65k mark. The rally, in the daily timeframe managed to notably break through the 20 EMA resistance, retest the 50 EMA resistance and as well as break through the weekly 200 EMA resistance (Now flipped support). Despite crossing through many resistance levels, like Bitcoin, Ethereum still needs to have a successful retest of the 20 EMA and a break of the 50 EMA to continue a healthy uptrend.

While the daily RSI and MACD are inching closer to the overbought territories, they still have room for a strong potential breakout (Especially because the daily RSI isn't under any kind of resistance). In terms of the weekly MACD, the red bars are beginning to curve, which indicates the start of an uptrend. Additionally, the daily 20 EMA is beginning to curve towards the 50 EMA, which supports the claim of the MACD. However, the weekly RSI is still under strong resistance. This means that unfortunately, unless there is a strong break from this RSI resistance, the rally will end at this current level. 

The 4-hour time frame is currently also in unhealthy levels of overbought territories (Shown in both the RSI and MACD). This means that at this point in time, within the next few days, a correction to a support level of any kind is immanent. Currently, that level is the daily 20 EMA, which if broken, means that the next level of support is at 1.5k.

Conclusion

All in all, while Ethereum still has the potential for a rally towards 1.8k, there are still many obstacles to overcome (In the longer term), especially in the weekly timeframe.