Ethereum Eyes Strong Reversal, Why Downside Might Be Limited


Ethereum is showing positive signs above $1,720 against the US Dollar. ETH could start a sharp rise 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 could start a strong rise if there is a clear move above the $1850 resistance zone.

Ethereum price maintains support

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

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 the gains. It is now consolidating above the $1,770 level.

The recent low was formed near $1,753 before the price surged 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 near the 50% Fib retracement level of the recent drop from the $1,875 high to $1,753 low.

Ethereum Price

Source: ETHUSD on TradingView.com

The next major resistance is near the $1,830 level. It is close to the 61.8% Fibonacci retracement level of the recent drop from the $1,875 high to $1,753 low. The main resistance is near the $1,850 level. A clear move above the $1850 resistance could initiate a sharp rally.

New drop in ETH?

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

The next big support is near the $1,720 level. A close below the $1,720 support could add to the selling pressure. In the indicated case, the price could slide towards the support zone of $1,650 in the short term.

technical indicators

MACD per hour – The MACD for ETH/USD is now losing momentum in the bearish zone.

RSI per hour – The RSI for ETH/USD is now close to the 50 level.

Major Support Level: $1,720

Major resistance level: $1,850


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