Ethereum Price Analysis: Bulls Eye $2,705 as Bearish Signals Loom

#Ethereum has been trading within a tight range over the past few hours, with the closing prices hovering between $2,690 and $2,700. As traders assess the market conditions, the technical indicators reveal a mixed sentiment, hinting at a potential consolidation phase before a decisive breakout.

At present, Ethereum faces key resistance at $2,705.5 and $2,718.2, which have proven to be significant barriers to upward movement. A break above these levels could open the doors for a more sustained rally toward higher price zones. However, failure to breach these resistance levels could result in a pullback toward key support levels at $2,643.4, $2,641.44, and $2,621.5.

The market's short-term direction will likely hinge on how Ethereum responds to these critical zones.

The 9 EMA (Exponential Moving Average) currently rests slightly above the Ethereum price action at $2,694.23, indicating that the short-term trend is still relatively weak. However, the 20 EMA sits at $2,686.26, suggesting that Ethereum is trading above a critical short-term support zone.

The fact that the 9 EMA remains above the 20 EMA reflects a slightly bullish bias. However, with the gap between the two narrowing, it indicates that the upward momentum may be losing steam. Should the Ethereum price drop below both EMAs, it could trigger a sharper correction.

The MACD (Moving Average Convergence Divergence) shows a bearish trend. The MACD line has crossed below the signal line, with a histogram increasingly in negative territory, currently showing a value of -2.40. This suggests that bearish momentum is building, and a continuation of the downtrend could be expected if the MACD histogram continues to widen negatively.

The declining MACD values reinforce the possibility of a short-term Ethereum price correction. Bulls may have to wait until the MACD begins to reverse and the histogram narrows before initiating long positions. $ETH #ETH Read more on www.ecoinimist.com.