ETH Price Outlook(11/9/2023) - Breakout above 2.1k or rejection?

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 above 2.1k or rejection?

During the past few days, Ethereum has been rallying quite a bit. Today, Ethereum climbed up 12% and reached the yearly ATH (Which is 2.1k). However, currently, Ethereum is at a crossroads in between breaking out of the 2.1k yearlong resistance or being rejected by it. In this article, I will go over the technical indicators as well as determine the conditions of each possible scenario.

4-hour time frame:

In the 4-hour time frame, many technical indicators point towards the unhealthy nature of Ethereum. Currently, the RSI is well over overbought territories and the MACD is quickly rising (Which will soon form a bearish cross). Additionally, the volatility of the recent 4-hour bars printed were exceptionally low while the RSI is still remaining very high. This confirms that within the next day or so, Ethereum will have a correction of some kind in order to reset the overbought natures of the MACD and RSI.

24-hour time frame:

In the 24-hour time frame, it is also sharing the same bearish sentiment as the 4-hour time frame. The RSI is still highly overbought with it being at 84. However, the bearish cross forming in the MACD was invalidated, and the MACD instead is rising even higher. This means that while the inevitable correction will be delayed by perhaps a few days, the even higher MACD would cause the bearish cross that does form to have a significant amount of bearish momentum to ride down. This correction would most likely bring Ethereum to retest the 1.9k support level or even the 1.8k (20 EMA), 1.75k (50 EMA), and the 1.73k (200 EMA). 

Weekly time frame:

In the weekly time frame, things are looking very neutral or even slightly bullish. While the RSI is still climbing quickly towards overbought territories, the MACD is still forming small green bars, which is slightly bullish. Additionally, the 20 EMA has officially cross over the 50 EMA, which indicates the start of an uptrend. However, despite these indicators being bullish, the indicators shown on the 24-hour time frame along with the RSI on the weekly does indicate that Ethereum is likely to not have a sufficient enough of bullish momentum to be able to breakout of the 2.1k resistance level.

Conclusion

In conclusion, Ethereum is bound to have a correction, whether it happens now or later, it is bound to happen. The longer it is being stalled, the more significant it will be.

* ARTICLE ORIGINIALLY PUBLISHED ON PUBLISH0X *