TA: Ethereum Retreats Without Testing $750, Why 100 SMA Is The Key

Aayush Jindal

1 year ago

2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Ethereum started a downside correction from the $746 yearly high against the US Dollar. ETH price is likely to find strong bids near the $684 and $675 support levels.

Ethereum traded to a new yearly high at $746 before starting a downside correction.
The price is now trading close to $700, but it is above the 100 hourly simple moving average.
There is a major bullish trend line forming with support near $675 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could resume its upward move as long as it is above $684 and $675.

Ethereum Price is Correcting Gains

There were additional gains in Ethereum above the $720 resistance level. ETH price gained momentum above the $730 level and settled well above the 100 hourly simple moving average.

The price even spiked above the $740 level, but it failed to test the $750 mark. A new yearly high was formed near $746 before ether price started a downside correction. There was a strong decline in xrp, which is dragging both bitcoin and ether lower.

The price corrected below the $720 support level. There was also a break below the 50% Fib retracement level of the upward move from the $661 swing low to $746 high.

Source: ETHUSD on TradingView.com

The first key support on the downside is near the $684 level. It is also close to the 76.4% Fib retracement level of the upward move from the $661 swing low to $746 high. Moreover, there is a major bullish trend line forming with support near $675 on the hourly chart of ETH/USD.

The 100 hourly SMA is also close to the trend line support and $670. Any more losses could lead the price towards the $650 support.

Fresh Increase in ETH?

If ethereum stays above the $684 support or the trend line, it could start a fresh increase. An initial resistance on the upside is near the $715 level.

The first major resistance is near the $720 level. A clear break above the $720 level may perhaps increase the chances of a fresh bullish wave. In the stated case, ether will most likely test the $750 resistance level.

Technical Indicators

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

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

Major Support Level – $684

Major Resistance Level – $720

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.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he's trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush's journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he's poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush's unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.