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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Ethereum Just Saw Key Technical Correction But 100 SMA Can Trigger New Rally

Aayush Jindal
Aayush Jindal
1 year ago
2 mins read
Ethereum

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Ethereum price started a downside correction from the key $180 resistance area against the US Dollar. ETH is currently below $175, but it is holding the 100 hourly simple moving average.

  • Ethereum failed to climb above $180 once again and recently declined below $175 against the US Dollar.
  • The price is now trading near the $170 support and the 100 hourly simple moving average.
  • Yesterday’s highlighted key major ascending channel was breached with support near $175 on the hourly chart of ETH/USD (data feed via Kraken).
  • Bitcoin price also corrected lower after it failed to continue above the $9,500 resistance.

Ethereum Price Starts Corrective Decrease

Yesterday, we discussed the last line of defense for Ethereum bears near the $180 area against the US Dollar. ETH price did struggle to continue above the $178 and $180 resistance levels.

As a result, there was a bearish reaction below the $175 support area. More importantly, yesterday’s highlighted key major ascending channel was breached with support near $175 on the hourly chart of ETH/USD.

Ethereum Price
Ethereum Price

It opened the doors for more losses below the $174 and $172 levels. Finally, Ethereum tested the $170 support area and found bids near the 100 hourly simple moving average.

A swing low is formed near $170 and the price is currently testing the 23.6% Fib retracement level of the recent slide from the $179 swing high to $170 low. However, there are many hurdles on the upside near the $175 level.

The previous support near $175 is now near the 50% Fib retracement level of the recent slide from the $179 swing high to $170 low. Besides, there is a connecting bearish trend line forming on the same chart with resistance near the $175 level.

Therefore, a successful close above the $175 area is needed for a fresh rally in Ethereum. In the mentioned case, the price is likely to retest the main $178 and $180 resistance levels.

ETH Downside Break Possibility

As seen in the chart, the $170 support seems important. If the bulls fail to keep Ethereum above the $170 support, there is a risk of a larger decline.

A successful close below $170 and the 100 hourly simple moving average could lead the price towards the $168 support in the short term. The next major support is near the $164 level.

Technical Indicators

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

Hourly RSI – The RSI for ETH/USD is now below the 50 level, with a bearish angle.

Major Support Level – $170

Major Resistance Level – $175

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Aayush Jindal
Aayush Jindal

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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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.

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Reason to trust

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Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
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Strict editorial policy that focuses on accuracy, relevance, and impartiality

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