Why ETH Remains Attractive Near 100 SMA

0
88

Ethereum hit a new annual high of $ 1,280 before correcting against the US dollar. ETH price fell above $ 200 but the bulls were active near the 100 hour simple moving average.

  • Ethereum gained over $ 1,200 in pace, trading at a new multi-month high near $ 1,280.
  • The price is correcting gains, but is well above $ 1,100 and the 100-hour simple moving average.
  • The ETH / USD hourly chart (data feed via Kraken) broke below a major bullish trendline with support near USD 1,225.
  • The pair should continue to rise as long as it stays above the $ 1,100 and 100-hour SMA levels.

Ethereum price corrects sharply

Bitcoin and Ethereum saw a strong uptrend yesterday above $ 28,500 and $ 1,200, respectively. The ETH price even rose above the USD 1,250 level and hit a new multi-month high near USD 1,280.

There has recently been a sharp downward correction below the $ 1,200 level. Ether price fell over $ 200 and was even below the $ 1,100 level. There was also a break below a major bullish trendline with support near USD 1,225 on the ETH / USD hourly chart.

However, the bulls remained active near the 100-hour simple moving average. A low is being formed near $ 1,065 and the price is currently rising. It broke the $ 1,100 level and traded well above the 100-hour SMA.

Source: ETHUSD on TradingView.com

Ether climbed above the 23.6% fib retracement level of the downward correction from $ 1,279 to $ 1,065. It now faces hurdles near the USD 1,175 and USD 1,180 levels (a key breakdown zone).

The 50% Fib retracement level of the downside correction from the high of $ 1,279 to the low of $ 1,065 is also acting as resistance for the bulls. If there is a significant break above $ 1,180 and a follow-up move above $ 1,200, the price could start a new spike towards the $ 1,280 and $ 1,300 levels.

Dips Limited at ETH?

If Ethereum fails to hit the USD 1,180 and USD 1,200 resistance levels, it could start another downward correction. An initial downward move is near the $ 1,135 level.

The main support is now forming near the $ 1,100 level and the 100 hour SMA. If the closing price is below the 100-hour SMA, the price could fall sharply towards the $ 1,000 support level.

Technical indicators

Hourly MACD – – The MACD for ETH / USD is slowly gaining pace in the bullish zone.

Hourly RSI – – The RSI for ETH / USD is currently recovering to the 45 level.

Main support tier – $ 1,100

Main Resistance Level – $ 1,200