ETH/USD Establishes a Successful Change of Character

The Ethereum (ETH) price recently reached a support zone at $2,890.0  after forming a head and shoulders pattern at the $4,085.0 resistance zone. The prior downward trend in March and April ceased at the same support level of $2,890.0. During this period, the price tested the downward channel trendline at the support zone, creating a confluence that indicated a potential price ascent.

Substantial buying pressure at this support level provided immense support, causing the price to rise significantly. The price has now surpassed the last bearish order block on the downtrend, resulting in a Change of Character (ChoCh) and setting the stage for further price increases.

ETH Key Levels

Demand Levels: $2,890.0, $2,590.0, $2,292.0
Supply Levels: $3,385.0, $4,085.0, $5,000.0

What are the Indicators Saying?

The Relative Strength Index (RSI) revealed that the price was oversold when it tested the confluence zone formed by the previous support level of $2,890 and the border of the descending channel. This provided a promising longing opportunity from the demand zone. Additionally, the price has risen above the Moving Averages (periods 9 and 21), causing a crossover. This crossover signals a trend reversal and sets the stage for a new bullish trend, indicating that the market sentiment is turning positive for ETH.

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