Bitcoin
$22,940.88
+139.22
(+0.61%)
Ethereum
$1,633.92
+8.11
(+0.5%)
Ripple
$0.39
-0
(-1.15%)
Litecoin
$99.01
+3.13
(+3.26%)
EOS
$1.07
-0.01
(-0.83%)
Cardano
$0.39
-0
(-0.94%)
Stellar
$0.09
-0
(-0.74%)
NEO
$8.85
+0.14
(+1.55%)
NEM
$0.04
0
(+0.74%)
DigitalCash
$63.73
+2.64
(+4.32%)
Tether
$1.00
0
(0%)
Binance Coin
$328.41
+4.37
(+1.35%)
QTUM
$2.84
+0.04
(+1.32%)
Verge
$0.00
0
(+0.63%)
Ontology
$0.23
-0
(-0.48%)
ZCash
$44.19
+0.62
(+1.42%)
Steem
$0.23
+0.01
(+4.02%)

TA: Ethereum Won’t Go Down Quietly: Risk of Bounce Grows

0 27

Ethereum is forming a base near the $3,660 zone against the US Dollar. ETH price is correcting higher, but a move above $3,920 is needed for upside continuation.

  • Ethereum is forming a base near the $3,660 and $3,700 support levels.
  • The price is still trading below $4,000 and the 100 hourly simple moving average.
  • There was a break above a connecting bearish trend line with resistance near $3,800 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a fresh increase if it clears the $3,920 resistance zone and the 100 hourly SMA.

Ethereum Price Forms Base

Ethereum extended decline below the $3,800 level. ETH formed a base near the $3,660 and $3,700 levels, and recently started an upside correction.

There was a move above the $3,800 level. The price cleared the 23.6% Fib retracement level of the recent drop from the $4,175 swing high to $3,665 low. Besides, there was a break above a connecting bearish trend line with resistance near $3,800 on the hourly chart of ETH/USD.

Ether price is now facing resistance near the $3,880 zone. The next major resistance is near the $3,920 level. It is close to the 50% Fib retracement level of the recent drop from the $4,175 swing high to $3,665 low. A clear move above the $3,920 level could stage a steady upward move.

Source: ETHUSD on TradingView.com

The next stop for the bulls could be $4,000. A close above the $4,000 level may possibly spark a strong rally in the coming sessions. In the stated case, it could even rise towards the $4,250 level.

Fresh Decline in ETH?

If ethereum fails to start a fresh increase above the $3,920 level, it could start a fresh decline. An initial support on the downside is near the $3,820 level.

The key support is now forming near the $3,720 level. If there is a clear break below the $3,720 support, the price could extend losses. The next major support is $3,660, below which the bears are likely to aim a test of $3,500. Any more losses might lead the price towards the $3,320 level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly gaining pace in the bullish zone.

Hourly RSIThe RSI for ETH/USD is above the 50 level.

Major Support Level – $3,720

Major Resistance Level – $3,920

Source: NewsBTC

Subscribe to our newsletter
Sign up here to get the latest news, updates and special offers delivered directly to your inbox.
You can unsubscribe at any time
Leave a comment