Ethereum Provides Important Support, Why ETH Should Take This Hurdle
Ethereum is still above the $1,720 support against the US dollar. ETH needs to free up $1,820 and $1,850 to start a steady rise in the near term.
Ethereum is still above the key USD 1,720 support zone. The price is now trading below $1,800 and the 100 hourly simple moving average. A pivotal bearish trendline is forming with resistance near $1,800 on the ETH/USD hourly chart (data feed via Kraken). The pair could start strong gains if there is significant movement above $1,820 and $1,850.
Ethereum Price Testing Key Support
Ethereum attempted fresh rise above the $1,820 resistance zone. However, there was no upward continuation and the price remained below the USD 1,850 resistance zone.
It peaked near $1,831 and the price moved lower. There was a break below the $1,800 support zone and the 100 hourly simple moving average. A low was formed near $1,767 and the price remained above the key $1,750 support zone.
Ether is now consolidating above the $1,750 support. It climbed above the 23.6% Fib retracement level from the recent drop from the $1,831 swing high to $1,767 low.
On the upside, an initial resistance is near the $1,800 level. A crucial bearish trendline is also forming with resistance near $1,800 on the ETH/USD hourly chart. The trendline is close to the 50% Fib retracement level from the recent drop from the $1,831 swing high to $1,767 low.
Source: ETHUSD on TradingView.com
The next major resistance is near the $1,820 level. The main resistance is still near the $1,850 level. A clear move above the USD 1,850 resistance could spark a sharp rise. The next major resistance is near the $1,920 level.
Disadvantage of ETH?
If ethereum fails to break above the $1,820 resistance, it may continue to fall. An initial support on the downside is near the $1,765 zone.
The next major support is near the $1,720 level. A clear move and breach below the $1,720 support could trigger a big drop. In the mentioned case, the price could slide towards the $1,650 support zone in the near term.
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now just near the 50 level.
Major Support Level – $1,720
Major Resistance Level – $1,820