TA: Ethereum Corrects Lower, What Could Spark A Fresh Rally

Aayush Jindal

1 year ago

2 mins read

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Ethereum rallied further towards $2,250 before it faced sellers against the US Dollar. ETH price is correcting lower, but the bulls are likely to remain active near $2,000.

Ethereum started a downside correction after it tested the $2,250 resistance zone.
The price is still well above $2,000 and the 100 hourly simple moving average.
There is a major bullish trend lien forming with support near $1,975 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could dip in the short-term, but the bulls might protect the $2,000 support zone.

Ethereum Price Remains Supported

Ethereum remained well bid above the $2,000 support zone and it extended its upward move. ETH surpassed the $2,150 resistance zone and the 100 hourly simple moving average.

The price even climbed above the $2,200 level. Ether tested the $2,240 zone before the bears appeared. A high was formed near $2,241 before it started a downside correction. There was a break below the $2,200 support zone.

There was also a break below a connecting bullish trend line with support near $2,160 on the hourly chart of ETH/USD. The pair is now testing the 23.6% Fib retracement level of the of the upward move from the $1,716 swing low to $2,241 high.

Source: ETHUSD on TradingView.com

The next major support is near the $2,070 level, followed by the 100 hourly SMA. There is also a major bullish trend lien forming with support near $1,975 on the same chart. The trend line is close to the 50% Fib retracement level of the of the upward move from the $1,716 swing low to $2,241 high.

Any more losses could spark a steady decline below $1,950. The next major support on the downside is near the $1,850 level.

Fresh Increase in ETH?

If Ethereum remains above the trend line support and $1,950, it could start a fresh increase. An immediate resistance on the upside is near the $2,200 level.

The next key resistance is near the $2,250 zone. Any more gains could set the pace for a move towards the $2,320 level. In the stated case, the bulls might even aim a test of $2,500 in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bullish zone.

Hourly RSI – The RSI for ETH/USD is currently just below the 50 level.

Major Support Level – $2,000

Major Resistance Level – $2,250

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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