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TA: Ethereum Eyes Strong Reversal, Why Dips Could Be Limited

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Ethereum is showing positive signs above $1,720 against the US Dollar. ETH could start a strong increase if there is a clear move above the $1,850 resistance.

  • Ethereum remained well supported above the $1,720 support zone.
  • The price is now trading below $1,820 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $1,815 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair might start a strong increase if there is a clear move above the $1,850 resistance zone.

Ethereum Price Holds Support

Ethereum remained well supported above the $1,720 support zone. A base was formed near $1,725 and there was a fresh increase.

The price spiked above the $1,800 resistance level and the 100 hourly simple moving average. However, the price struggled to gain pace above the $1,850 level. A high was formed near $1,875 and the price corrected gains. It is now consolidating above the $1,770 level.

The recent low was formed near $1,753 before the price climbed above $1,780. Ether price is now trading below $1,820 and the 100 hourly simple moving average.

On the upside, an initial resistance is near the $1,810 level. There is also a major bearish trend line forming with resistance near $1,815 on the hourly chart of ETH/USD. The trend line is close to the 50% Fib retracement level of the recent decline from the $1,875 swing high to $1,753 low.

Ethereum Price

Source: ETHUSD on TradingView.com

The next major resistance is near the $1,830 level. It is near the 61.8% Fib retracement level of the recent decline from the $1,875 swing high to $1,753 low. The main resistance is near the $1,850 level. A clear move above the $1,850 resistance might start a strong increase.

Fresh Decline in ETH?

If ethereum fails to rise above the $1,850 resistance, it could continue to move down. An initial support on the downside is near the $1,770 zone.

The next major support is near the $1,720 level. A close below the $1,720 support could increase selling pressure. In the stated case, the price could slide towards the $1,650 support zone in the near term.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now losing momentum in the bearish zone.

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

Major Support Level – $1,720

Major Resistance Level – $1,850

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