Ethereum Eyes Strong Reversal, Why Dips Could Be Limited

Positive signs are being seen for Ethereum above $1720 against the US dollar. If the price of Ethereum rises above $1,850 then it could be a significant increase.

  • Ethereum was well supported at the $1,720 support level.
  • The 100 hourly moving average and price are now below $1820.
  • A major bearish trendline is emerging with resistance close to $1,815 in the hourly chart of Ethereum/USD (datafeed via Kraken).
  • If the pair moves above $1,850 it could start an increase.

Ethereum Price Support

Ethereum supported well above $1720 support. There was an increase in Ethereum’s support level above $1,725; a base was established.

Price soared to $1,800 above resistance levels and the 100 hourly moving average. The price did not gain momentum above $1,850. Near $1,875 was a peak and then the price recovered. Now, it is consolidating above $1770.

Near $1,753 was the most recent low before the current price surged above $1780. Ether is currently trading at $1,820. This price also includes the simple 100-hour moving average.

The $1,810 mark is the initial resistance. A major bearish trendline is also emerging with resistance close to $1,815 in the hourly chart. This trend line is very close to 50% Fib Retracement of the decline from $1,875 swing highs to $1,753 lows.

Ethereum Price

Source: TradingView.com ETHUSD

It is located near $1,830. The Fib retracement level at 61.8% of the recent fall from $1.875 swing high and $1.753 low is also near this area. It is close to the $1,850 resistance level. Strong increases could begin if the resistance is broken above $1,850.

Is there a new decline in ETH?

The $1,850 resistance could be broken and ethereum may continue its downward slide. Initial support is located near $1,770.

Near the $1720 support level is the next significant support. Selling pressure could be increased if the price falls below $1,720. The price may slide to the $1,650 support area in this scenario.

Technical indicators

Hourly MACDMACD for USD/ETH is losing momentum now in the bearish area.

Hourly RSIThe RSI is close to 50 for USD/ETH.

Major Support Level – $1,720

Major Resistance Level – $1,850

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