Home CryptocurrencyAnalysis Ethereum price is signaling a recovery, but the key is the 100 SMA

Ethereum price is signaling a recovery, but the key is the 100 SMA

by SuperiorInvest

The price of ethereum is slowly moving higher from $1,840 against the US dollar. ETH still faces strong resistance near the $1,875 level and the 100 hourly SMA.

  • Ethereum is currently consolidating losses above the $1,820 support zone.
  • The price is trading below $1,875 and the 100-hour simple moving average.
  • On the hourly chart of ETH/USD (data feed via Kraken), there was a break above the main bearish trend line with resistance near $1,850.
  • The pair might struggle to clear the $1,875 and $1,880 resistance levels.

Ethereum Price Begins Consolidation

Ethereum price remained in bearish territory at the $1,875 support zone. ETH tested the $1,810 zone and recently started a consolidation phase, similar bitcoin.

A low is forming near $1,812 and the price is slowly moving higher in the range. It traded above the 23.6% Fib retracement level of the swing move from the $1,935 high to $1,812 low. Additionally, there was a break above the major bearish trendline with resistance near $1,850 on the hourly chart of ETH/USD.

However, Ether is still trading below $1,875 and 100 hour simple moving average. Immediate resistance is near the $1,860 level. Additional resistance is located near $1,875 or the 100-hour simple moving average or 50% Fib retracement of the swing move level from the $1,935 high to $1,812 low.

Source: ETHUSD on TradingView.com

Another key resistance could be near the $1,920 level. A close above the $1,920 resistance zone could trigger a decent rally for Ethereum and the price could rise towards the $1,975 resistance. Any further gains could send the price towards the $1,950 resistance.

Another drop in ETH?

If Ethereum fails to clear the $1,875 resistance, it could start another decline. Initial downside support is near the $1,820 level or the recent low.

Another major support is near the $1,800 zone. If there is a breakout to the downside and a close below $1,800, the bears could gain strength. In the said case, the price may fall towards the $1,720 support zone. Any further losses may push the price towards the $1,650 level in the near term.

Technical indicators

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

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

Main support level – $1,800

Major resistance level – $1,875

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