- 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
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
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
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.