ETH/USD has climbed above $1,600 but the bearish outlook means bulls are battling for control
Ethereum’s break above $1,600 support zone sees it trading inside an ascending channel, suggesting extended gains towards $1,800 are possible. Buyers are however facing strong resistance just above the $1,600 level and ETH/USD could dip again amid fresh selling pressure.
The same outlook is being witnessed with Bitcoin, whose rebound has seesawed around $50,000 even as more institutions load up on the digital Gold. If BTC suffers another sell-off bout, altcoins could follow suit, with Ethereum’s price likely to retest weekly lows near $1,300.
ETH/USD broke below several support zones on its recent decline as the crypto market reeled from widespread correction. First, bulls could not keep prices above the middle line of an ascending parallel channel on the daily chart.
The breakdown took out support at the 20-day exponential moving average and then the lower support of the channel. An extended sell-off accelerated as ETH/USD plunged past the 50-day EMA to touch lows of $1,350.
However, bulls aggressively bought the dip and pushed prices back above the lower boundary of the channel.
As the daily chart shows, Ethereum has bounced from a major support zone near $1,500 and is trying to strengthen inside the ascending channel. Keeping prices inside the channel is critical if bulls have to maintain advantage and target higher prices.
If bulls maintain the upward trajectory, positive sentiment could see Ether’s ETH price rise to highs of $1,700. It will likely provide initial resistance, while a break above this level will allow bulls to retest the 20-day EMA ($1,718).
From here, bulls need to target a daily close above $1,750, and fresh impetus may make it possible to attack the resistance line around $1,800.
But as the daily MACD suggests, bears still have the strength to push prices lower again.
Bulls’ attempt to break higher currently faces strong resistance at $1,651, the 0.236 Fib retracement level of the upswing from $1,429 low to $1,720 high. Seller congestion around this price means ETH/USD is likely to face another dip.
Although the MACD suggests bulls are gaining the upper hand, an RSI that is below the half-line mark works against an immediate upside rally.
For the bulls, ETH prices need to hold above $1,600, with the upside potential intact even with a break to the 0.5 Fib retracement level ($1,574).
However, bears might exert added pressure if the price dips past the 0.618 Fib level ($1,540). If this happens, ETH/USD could decline to horizontal support at $1,430 and then this week’s low of $1,350.
At the time of writing, the cryptocurrency is changing hands around $1,615.
The post Ethereum price recovery stalls near $1,650: What’s Next? appeared first on Coin Journal.
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