Ethereum Holds Key Support, Why ETH Must Clear This Hurdle

Ethereum still has a support of $1,720 against the US dollar. To see a gradual increase, ETH needs to clear $18,820 and $11,850.

  • Ethereum remains above the $1,720 support area.
  • Now, the price of gold is trading at $1800 below its 100 hourly moving average.
  • A crucial bearish trendline is emerging with resistance at $1,800 (data feed via Kraken).
  • A clear rise above $1820 and $1850 could lead to a significant increase in the price of this pair.

Ethereum Price Testing Key Support

Ethereum attempted to make a new increase above $1,820 resistance. There was no upward continuation, and the price held below the $1.850 resistance zone.

Near $1,831 was the high and then it dropped. A break was seen below the $1,800 support level and the 100 hourly simple movement average. The price fell to $1,767, but it remained above the $1,750 key support zone.

Ether now holds above the $1750 support. It has moved above the 23.6% Fib Retracement Level of the recent fall from the $1.831 swing high, to the $1.767 low.

A potential initial resistance lies at the $1,800 area. The hourly chart of Ethereum/USD shows a bearish trendline with resistance close to $1,800. This trend line is very close to 50% Fib Retracement of the decline from $1,831 swing high, to $1,767 lowest.

Ethereum Price

Source: TradingView.com ETHUSD

Near the $1,820 mark is the next significant resistance. However, the main resistance lies at or near $1,850. The $1,850 level is the most likely resistance to a significant increase. Next is $1,920.

What is the Downside to ETH?

It could move lower if it fails to climb above $1,820 resistance. Initial support is located near $1,765 to the downside.

Next major support will be at the $1720 level. If the price moves below the $1720 level, it could trigger a significant decline. If the above scenario is true, then the price could fall towards the $1650 support level in the short term.

Technical Indicators

Hourly MACDMACD of ETH/USD has lost momentum and is currently in the bearish zone.

Hourly RSINow, the RSI is just above 50 for USD/ETH.

Major Support Level – $1,720

Major Resistance Level – $1,820

Get more Crypto News at CFX Magazine