ETHUSD Begins a Bearish Retracement as the Market Becomes Overbought

ETHUSD has begun a retracement to the downside as the market becomes overbought. This came after a rapid increase in the price of Ethereum over the past few weeks. After a bounce off the $2137.00 resistance, the bears stormed the market, causing a clear pullback.

Prior to the current uptrend, the previous uptrend occurred about four months ago. The previous uptrend ended after difficulty in breaching the previous resistance at $1866.00. ETHUSD crashed massively into the discount zone from the $1866.00 previous supply zone. Apparently, the influence of the bulls remained in the market as prices struggled to sink lower after attaining the $1520 major low. As the market currently undergoes a bearish retracement, the uptrend is likely to resume at the bullish order block in the $1866.00 demand zone.

ETH Key Levels

Demand Levels: $1866.00, $1746.00, $1520.00
Supply Levels: $2137.00, $2300.00, $2954.00

What are the Indicators Saying?

The current market’s uptrend started after the accumulation phase ended in late October 2023. The MA Cross began an upward expansion as a change of character occurred afterward. The presence of bulls has since been driving prices upward until the Stochastic Oscillator indicated that the market is overbought. Following a significant correction to the demand zone, ETHUSD is likely to resume its uptrend.

 

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