Ethereum Reaches Crucial Crossroads, Can the Bulls Make It?


Ethereum established a base near $1,740 and started a wave of recovery against the US dollar. ETH is now facing a major resistance near the $1,900 zone.

Ethereum started a recovery wave above the $1,800 and $1,820 levels. The price is now trading above $1,820 and the 100 hourly simple moving average. There was a break above a key bearish trendline with resistance near $1,820 on the ETH/USD hourly chart (data feed via Kraken). The pair needs to clear the $1,900 and $1,920 resistance levels to continue higher.

Ethereum price Eyes upside down

Ethereum extended its decline below the $1,800 level. However, the bulls were active above the $1,700 level. The price consolidated near the $1,740 level before starting some decent upward movement.

There was a definite move above the $1,800 resistance zone. Ether price surpassed the 50% Fib retracement level from the downward move from the $1,910 swing high to $1,700 base. Additionally, there was a break above a key bearish trendline with resistance near $1,820 on the ETH/USD hourly chart.

The price is now trading well above $1,820 and the 100 hourly simple moving average. It is also consolidating above the 76.4% Fib retracement level from the downward move from the swing high of $1,910 to a $1,700 base.

Source: ETHUSD on TradingView.com

On the upside, an initial resistance is near the $1,900 level. The next major resistance is near the $1,920 level. A good upward break above the $1,920 resistance could see a decent gain. In the mentioned case, ether price could climb towards the $2,000 resistance zone. More gains may send it into the key USD 2,085 resistance zone.

New Drop in ETH?

If ethereum fails to continue above the $1,920 resistance, it could start another decline. An initial support on the downside is near the $1840 zone.

The next major support is near the $1,820 level and the 100 hourly simple moving average. A downward breach below the $1,820 level could lead to another sharp drop. In the mentioned case, the price could revisit the $1,720 support zone in the near term. The next major support is near $1,700.

Technical indicators

Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now well above the 60 level.

Major Support Level – $1,820

Major Resistance Level – $1,920

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