The Ethereum price shows the formation of a rounding bottom pattern in the daily time frame chart. Under the influence of this pattern and ongoing recovery sentiment in the broader market, the prices witnessed 30% growth over the past two weeks. However, the buyers currently struggling at $1650 resistance show signs of bearish reversal. Should you keep holding?

Key points: 

• A rounding bottom pattern governs the Ethereum price action.
• The rising 20-and-50-day EMA shows signs of bullish recovery.
• The intraday trading volume in Ethereum is $14.5 Billion, indicating a gain of 32.6%. 

Source- Tradingview

The parabolic recovery in late October pushed the Ethereum price to the $1655 mark. However, amid the release of a 75 bps interest hike from the US Fed, the altcoin witnessed a minor pullback to $1500.

Nevertheless, the prices recovered immediately and tried to surpass the $1655 barrier. However, the higher price rejection at this resistance indicates the sellers continue to defend this mark.

Also read- Top 7 Ethereum Tokens You Should Buy in November 2022; Here’s List,

Today, the Ethereum price trades at $1627, with an intraday loss of 1.04%. If the selling pressure persists, the altcoin could plunge 7% to retest the $1500 support. Moreover, this possible bearish reversal may reveal the formation of a double-top pattern.

This bearish pattern could accelerate the selling pressure and break the $1500 support for prolonged correction.

On a contrary note, with the recovery sentiment in the crypto market continuing to develop, the buyers could reattempt a $1500 breakout. A daily candle closing above this resistance will undermine the bearish thesis and indicates the resumption of the prevailing uptrend,

Technical indicator-

EMAs: the 20-and-100-day EMA accumulated at the $1500 mark, increasing the supporting strength of this level. Moreover, a bullish divergence between these slopes would attract more buyers to the market.

RSI: A bearish divergence in the daily-RSI slope as it retests the $1650 resistance indicates a weakening of bullish commitment. This divergence bolsters the formation of the aforementioned bearish pattern.

Ethereum intraday price levels

• Spot price: $1630
• Trend: bearish
• Volatility: Low
• Resistance level- $1655 and $1800
• Support level- $1500 and $142

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