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

Date:

Ethereum has formed a base in the vicinity of the $3660 area against the US dollar. Although the ETH price is moving higher, a move above $3920 is necessary to ensure that upside continues.

  • Ethereum is building a base at the $3.660 and $3.700 support levels.
  • The current price of the stock is trading at $4,000, with the simple moving average of 100 hours.
  • The hourly chart for ETH/USD showed a break above the connecting bearish trendline with resistance at $3,800 (data feed via Kraken).
  • A new rise could be possible if the pair crosses the $3,920 resistance area and the 100 hourly SMA.

Ethereum Price Forms a Base

Ethereum fell below the $3800 mark. ETH established a base at the $3,660-$3,700 levels and has recently begun an upward correction.

A move higher than the $3,800 mark was observed. Price moved above the 23.6% Fib level of the drop from $4,175 swing high, to $3,665 lower. A break was also seen above the connecting bearish trendline with resistance at $3,800, on an hourly chart for ETH/USD.

Resistance is currently being experienced by Ether prices near the $3880 area. Near the $3,920 mark is the next significant resistance. This is near the Fib retracement of 50% the drop from $4,175 high to $3,665 lowest. It could show a steady uptrend if it moves above the $3920 level.

Ethereum Price

Source: TradingView.com, ETHUSD

Next stop for bulls may be at $4,000. An increase in price above $4,000 could spark an immediate rally. The above scenario could lead to a rise up to the $4,250 mark.

Is there a new decline in ETH?

It could experience a further decline if ethereum does not start an increase above $3,920. The $3,820 level is a support area for the downside.

The $3,720 support level is the key support. The price may lose more if it breaks below the $3720 level. Next major support is at $3,660. Below this level, bears could aim to test $3,500. Price could drop to $3,320 if it suffers more losses.

Technical Indicators

Hourly MACDSlowly the MACD of ETH/USD gains pace in bullish zones.

Hourly RSIThe RSI is higher than 50 for USD/ETH.

Major Support Level – $3,720

Major Resistance Level – $3,920

Get more Crypto News at CFX Magazine

Share post:

Subscribe

Popular

More like this
Related

Business Cycles In Macroeconomics Bright Trends

Investigate shifts in GDP, employment, and spending that shape economic cycles, what secret force is mysteriously steering the next major downturn?

Value Investing Vs Growth Investing: Smart Strategies

Value investing vs growth investing sparks debate; our analysis blends time-tested strategies with modern insights... what twist shifts the game?

Construction Market Trends Spark Investor Optimism

Current construction market trends show shifting strategies and surprising data. Uncommon patterns emerge that may completely change the industry's future...

Distributed Ledger Regulatory Framework: Expert Legal Clarity

Explore distributed ledger regulatory framework issues with banking case studies, shifting policies, and compliance twists, are answers hiding just beyond reach?