Ethereum Paddles Within Range Boundaries
By
Azeez Mustapha
PUBLISHED:
Oct 07 2024 @ 11:09
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More info about Azeez Mustapha
Ethereum’s price is currently oscillating within a defined range on the daily chart, marking a shift from its prior downward trend into a consolidation phase. This range is set by two primary zones: resistance at the $2,814.0 supply level and support at the $2,309.0 demand level. Notably, the resistance zone emerged after a prior demand zone at $2,814.0 was broken on August 4, subsequently transforming into a resistance level.
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Reversals at these key supply and demand zones have consistently been preceded by double tops or double bottoms chart patterns, highlighting potential turning points. These patterns serve as confirmations for potential trade reversals, offering valuable insights for range-bound trading strategies.
Ethereum Key Levels
- Demand Zones: $2,505.0, $1,550.0, $1,055.0
- Supply Zones: $2,814.0, $3,086.0, $4,000.0
Indicator Insights
Ethereum’s current daily candles have risen above the 9-period Moving Average, signaling a short-term shift in momentum to the upside. This move aligns with the Stochastic oscillator’s oversold signal on October 4, which hinted at potential upward pressure. Now approaching the upper resistance, Ethereum’s price trajectory suggests a retest of the supply zone, reinforcing its current range-bound behavior on the daily chart. Traders may watch for further signs of resistance like the double top pattern at these levels to gauge whether the consolidation will persist or break.
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