TA: Why Ethereum (ETH) Remains Attractive On Dips Towards $2,400
Ethereum remained well bid above the $2,500 zone against the US Dollar. ETH price must stay above $2,400 for upside continuation in the near term.
Ethereum struggled to clear the $2,650 resistance and corrected lower.
The price is still trading above $2,500 and the 100 hourly simple moving average.
There is a crucial bullish trend line forming with support near $2,460 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is likely to start a fresh increase unless there is a clear break below $2,400 in the near term.
Ethereum Price is Holding Key Support
Ethereum started a fresh increase above the $2,600 level, outpacing bitcoin. ETH price even broke the $2,650 resistance, but there was no real bullish momentum.
A high was formed near $2,666 before the price corrected lower. It broke the $2,600 support level, but it is still well above $2,500 and the 100 hourly simple moving average. There was a break below the 50% Fib retracement level of the upward move from the $2,510 swing low to $2,666 high.
The price is now testing the $2,550 support zone. It is near the 76.4% Fib retracement level of the upward move from the $2,510 swing low to $2,666 high. There is also a crucial bullish trend line forming with support near $2,460 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
On the upside, the first key resistance is near the $2,600 level. The main resistance is now forming near the $2,650 level. A clear break and close above $2,650 might start another steady increase. In the stated case, the price could revisit the $2,700 level.
More Losses in ETH?
If ethereum fails to continue higher above $2,620, it could extend its decline. An immediate support on the downside is near the $2,520 level.
The next major support is near the $2,510 level and the 100 hourly simple moving average. The main support is now forming near the trend line and $2,450. A clear downside break below the $2,450 support zone could lead the price towards the $2,350 support.
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now close to the 40 level.
Major Support Level – $2,450
Major Resistance Level – $2,650