TA: Ethereum Eyes Strong Reversal, Why Dips Could Be Limited

Aayush Jindal

1 year ago

2 mins read

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Ethereum is showing positive signs above $1,720 against the US Dollar. ETH could start a strong increase if there is a clear move above the $1,850 resistance.

Ethereum remained well supported above the $1,720 support zone.
The price is now trading below $1,820 and the 100 hourly simple moving average.
There is a major bearish trend line forming with resistance near $1,815 on the hourly chart of ETH/USD (data feed via Kraken).
The pair might start a strong increase if there is a clear move above the $1,850 resistance zone.

Ethereum Price Holds Support

Ethereum remained well supported above the $1,720 support zone. A base was formed near $1,725 and there was a fresh increase.

The price spiked above the $1,800 resistance level and the 100 hourly simple moving average. However, the price struggled to gain pace above the $1,850 level. A high was formed near $1,875 and the price corrected gains. It is now consolidating above the $1,770 level. Download Bitcoin Miner Awesom Miner Official for Windows. Safe install and earn ETH/BTC. Download Bitcoin Miner Awesom Miner Official for Windows. Safe install and earn ETH/BTC.

The recent low was formed near $1,753 before the price climbed above $1,780. Ether price is now trading below $1,820 and the 100 hourly simple moving average.

On the upside, an initial resistance is near the $1,810 level. There is also a major bearish trend line forming with resistance near $1,815 on the hourly chart of ETH/USD. The trend line is close to the 50% Fib retracement level of the recent decline from the $1,875 swing high to $1,753 low.

Source: ETHUSD on TradingView.com

The next major resistance is near the $1,830 level. It is near the 61.8% Fib retracement level of the recent decline from the $1,875 swing high to $1,753 low. The main resistance is near the $1,850 level. A clear move above the $1,850 resistance might start a strong increase.

Fresh Decline in ETH?

If ethereum fails to rise above the $1,850 resistance, it could continue to move down. An initial support on the downside is near the $1,770 zone.

The next major support is near the $1,720 level. A close below the $1,720 support could increase selling pressure. In the stated case, the price could slide towards the $1,650 support zone in the near term. Download Bitcoin Miner Awesom Miner Official for Windows. Safe install and earn ETH/BTC.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now near the 50 level.

Major Support Level – $1,720

Major Resistance Level – $1,850

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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