Sunday , May 16 2021
Home / Bitcoin / TA: Ethereum Corrects Rally, But 100 SMA Could Spark Fresh Increase

TA: Ethereum Corrects Rally, But 100 SMA Could Spark Fresh Increase

Ethereum climbed further above the $2,500 level against the US Dollar. ETH price is correcting gains, but it is likely to remain stable near $2,350 and the 100 hourly SMA.

  • Ethereum gained pace above $2,500 and it traded to a new all-time high near USD 2,548.
  • The price is now trading well above $2,400 and the 100 hourly simple moving average.
  • There is a key rising channel forming with support near $2,420 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is likely to resume its rise as long as it is above the $2,350 support zone.

Ethereum Price Is Correcting Gains

Ethereum followed a bullish path above the $2,400 level and extended its gains. ETH even broke the $2,500 level and traded to a new all-time high at $2,488.

Recently, there was a downside correction below the $2,500 level, similar to bitcoin. The bears were able to push the price below the $2,480 support level. The price even broke the 50% Fib retracement level of the upward wave from the $2,406 swing low to $2,548 high.

The price is now approaching the $2,420 support level. It is testing the 76.4% Fib retracement level of the upward wave from the $2,406 swing low to $2,548 high.

Ethereum Price

Source: ETHUSD on TradingView.com

There is also a key rising channel forming with support near $2,420 on the hourly chart of ETH/USD. If there is a downside break below the channel support, the price could decline towards the $2,350 support. The 100 hourly simple moving average is also near the $2,350 level to provide support.

Any more losses might call for a move towards the $2,300 level in the near term. The next major support is near the $2,200 level (the last major breakout zone).

Fresh Increase in ETH?

If Ethereum stays above the channel support, it could start a fresh increase above $2,450. An initial resistance on the upside is near the $2,500 level.

A successful break above the $2,500 level could initiate a move towards the $2,550 level. Any more gains are likely to set the pace for a test of $2,600 or even $2,660 in the coming sessions.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now just below the 50 level.

Major Support Level – $2,350

Major Resistance Level – $2,500


Source link

About admin

Check Also

Grayscale Fund Touts ETF Conversion as Price Discount Issue Solution

Grayscale, one of the largest cryptocurrency fund managers, has declared it is trying to morph …

Leave a Reply

Your email address will not be published. Required fields are marked *