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Ethereum is currently consolidating above $ 460 for the past two days. On November 15th, the asset again tested a low below $ 450, but now it looks brisk again for an upward rally. However, in such a bullish scenario, it continues to be difficult to ignore the bearish signals that were evident in the analysis.
Ethereum 12 hour chart
Source: ETH / USD on Trading View
Looking at Ethereum’s price direction since mid-September, the main result is its strong consolidation above the $ 365 support. This could come down to play a crucial role as the asset continues to climb higher.
However, just like Bitcoin, Ethereum is currently due for a correction. Its movement within the ascending broadening wedge recorded adequate lower highs and higher highs with the pattern. While the trend remains strongly bullish on all sides of the market, Ethereum faces its last resistance at $ 489 before illustrating another new high for 2020.
There is no doubt that Ethereum could rise in the coming weeks, but in the next week, if it fails to rise above $ 489, we could see an early correction. A key bearish indication is the current divergence between its price movement and trading volume.
Rationale
Source: ETH / USD on Trading View
The market indicator has indicated a similar outlook. The relative strength index or RSI has indicated bullish momentum, but sellers can lock in profits at any time in the markets. Awesome Oscillator suggests rising bearish momentum as red candles have emerged on the chart.
Finally, the balance volume is currently overexposed and reaches similar levels before the September crash. As already mentioned, sellers are ready to take profits right now.
Important range
Resistance: $ 489, $ 480
Support: $ 400, $ 440, $ 360
Long or short entry: risky to take any direction
Conclusion
Ethereum may be looking for a correction phase, but it is still risky to enter a long or short position at the moment. Price volatility is high and the pullback can occur in any price range.
