Today's price action in major cryptocurrencies was heavily influenced by a strong rally in Bitcoin, which impacted Ethereum's downward momentum. However, based on the current daily and weekly charts for Ethereum, as long as the daily MA30 resistance level is not decisively broken and held, Ethereum's price is likely to experience a pullback from current highs. The key MA30 price zone to monitor remains approximately between $2,278 and $2,310.
Despite facing resistance near the weekly MA5 and daily MA30, Ethereum continued to climb, largely due to Bitcoin's momentum shifting market attention and capital flows. Nonetheless, Ethereum is showing clear signs of weakness. Additionally, Bitcoin’s weekly TD13 sequence remains delayed. To be clear, it’s not that bullish setups are undesirable—however, a persistent rally without a proper TD indicator correction increases the risk of sudden, sharp reversals or “wipe-out” scenarios. Bitcoin’s current aggressive push may be testing major resistance levels, potentially shaking out short positions before a significant correction occurs.
Daily Chart Overview
On the daily chart, although Ethereum rebounded during the day, trading volume in indicators like KDJ and MACD did not follow through, and both remain in a downward trend. The MA10 and MA30 are still acting as dynamic resistance, suggesting the overall trendline remains bearish. As emphasized earlier, whether the price can break through the $2,278–$2,310 zone will determine the strength and sustainability of the current upward movement.
12-Hour Chart Perspective
The 12-hour chart presents mixed signals. While KDJ and MACD show reduced selling volume, the Bollinger Bands continue to indicate a bearish bias. Due to Bitcoin’s influence, Ethereum’s MA5 and MA10 have deviated from their initial bearish alignment with MA30, showing slight upward inflection. However, the higher MA30 continues its decline, indicating that short-term strength has not altered the broader trend.
For short-term traders, the critical question is whether Bitcoin’s momentum can help Ethereum break through the $2,278–$2,310 resistance area. This will heavily influence the direction of the next major move.
Short-Term Price Scenarios
- If the price fails to break above the $2,278–$2,310 resistance zone, a reversal and decline toward the first support level around $2,140–$2,070 is likely.
- If Ethereum manages to break above and sustain a position above $2,278–$2,310, the bullish momentum could continue, targeting the $2,385–$2,452 region. However, such a breakout could be a trap—a false rally—since Bitcoin’s weekly TD indicator has not yet been corrected. This implies that even if short-term resistance is broken, a severe reversal remains possible.
Traders are advised to proceed with caution. The market has been highly volatile with repeated reversals. Stay disciplined and avoid emotional decision-making.
Frequently Asked Questions
What is the significance of the MA30 level in technical analysis?
The MA30 (30-period Moving Average) is widely used to identify the medium-term trend. When price approaches this level, it often acts as dynamic support or resistance. A break above it with volume can signal strength, while rejection often leads to a pullback.
How does Bitcoin’s price action affect Ethereum?
Bitcoin remains the leading cryptocurrency, and its movements often influence the broader market, including Ethereum. Sharp rallies or declines in BTC can impact investor sentiment, capital flow, and short-term momentum in altcoins.
What does TD13 indicate in market analysis?
The TD Sequential indicator helps identify potential reversal points in the market. A TD13 signal suggests a possible exhaustion point in the current trend. If the signal is delayed, it may indicate underlying market weakness or an extended trend due for correction.
Why is the $2,278–$2,310 range important for Ethereum?
This zone aligns with key moving averages and previous price reactions, making it a significant technical barrier. A breakout could encourage more buying, while a rejection may lead to a deeper retracement.
How can traders manage risk in volatile conditions?
Using stop-loss orders, position sizing, and avoiding leverage during uncertain periods can help. It’s also useful to monitor multiple timeframes and wait for confirmation before entering trades. For those looking to improve their trading techniques, you can explore more strategies that emphasize risk management.
What should I do if the market suddenly reverses?
Stick to your trading plan and avoid panic selling. Having pre-defined exit points and keeping up with market analysis can help you respond logically instead of emotionally. To stay updated with real-time tools and insights, consider to view real-time tools that professional traders use.
Disclaimer: This content is for informational purposes only and is not intended as investment advice. Trading cryptocurrencies involves risk, including the possible loss of principal.