• Ethereum price had a solid recovery after the sell-off in major cryptocurrencies. 
  • Although Ethereum could break a bearish trend line, yesterday it was rejected at the monthly pivot.
  • Although Ethereum looks set to dip lower, there is support nearby.

Ethereum price last week broke to the upside and took out a bearish descending trend line. Although ETH got rejected and could not close above the monthly pivot at $2,277.76, it still has some more room to go to the upside.

Ethereum price is set to receive more buyers and push prices higher

After a five-day consecutive winning streak, ETH made a substantial recovery, coming from $1,663.62 and shooting up toward $2,370.65. But this is where it stopped for now. 

Ethereum price could not close above $2,277.76, which aligns with the monthly pivot and with a triple top formation before the aggressive dip lower toward this year's low at $1,663.62.

After such a winning streak, some profit-taking is normal as buyers will have targeted that triple top to take some profit and as an opportunity for sellers to go short. But not far below where we are now, we have a new area that might interest buyers from coming in.

We have the 200-day Simple Moving Average (SMA) at $1,952.65 that has proven its importance in the past. Each time it has been tested before ETH broke either to the upside or the downside in a clean break. The 200-day SMA is well respected.

Next, we have an ascending trend line from the low at $1,663.62 that will be a second reason for buyers to step in and pick up Ethereum at these levels.

ETH/USD daily chart

ETH/USD daily chart

Ethereum is a little bit in no man's land for now, so buyers will undoubtedly be targeting the area to get in for around $1,950. And likewise, sellers will target it to take profit. So the handover will be essential to see who has the upper hand. 

Should the 200-day SMA break to the downside together with the ascending trend line, expect some further downside price action toward the first support at $1,648.14.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP