Ethereum price is at strong resistance. The price is being held down by a diagonal resistance made by connecting swing highs from last summer.
On a daily frame the price has formed a range just below the diagonal. The top of the daily range sits at $248, the mid range is at $235 and the range low is at $220. The price is making lower highs and lower lows.
Whenever the price is range bound use its midrange as a compass. You can be bullish above the midrange and bearish below it. However, the price has to respect the boundary on a closing basis.
A daily close above $248 would mean a bullish shift in the market structure. But until then I’m leaning bearish since we bounced off resistance.
- The price has to close above the range high (close a daily candle above $248)
- The price has to hold above mid-range
- The price has to fall below the midrange
- The price has to close below the $220 range low boundary.
The nearest support and resistance levels are marked with light green and light red areas.