Key Takeaways:
- Ether’s price is holding major support at $1,800 and the 50-day simple moving average.
- ETH/USD traded below a key bullish trend line, with support at $1,930 on the daily chart.
- The price could start a new rally if it clears the $1,960 resistance zone.
NEW DELHI (CoinChapter.com) — Ethereum’s ETH is consolidating above $1,800. However, it must stay above $1,800 to start a fresh increase in the coming sessions.
Ethereum (ETH) Price Holds Above 50-Day SMA
Ethereum saw a strong bearish reaction from the $2,150 resistance zone against the US dollar this past week. The ETH/USD pair formed a short-term top at $2,146 and started a bearish wave.
There was a break below the $2,020 and $2,000 support levels. Besides, the pair traded below a key bullish trend line with support at $1,930 on the daily chart. It opened the doors for more losses below the $1,900 level, similar to Bitcoin below $28,000.
However, the bulls provided support near $1,800 and the 50-day simple moving average. The bears made two attempts to clear the 50-day simple moving average but failed.
A low is around $1,787, and Ethereum is now attempting a new increase. It climbed above the 23.6% Fib retracement level of the downward move from the $2,146 swing high to the $1,787 low. On the upside, immediate resistance is near the $1,930 level.
The first major resistance is near the $1,960 level. It is close to the 50% Fib retracement level of the downward move from the $2,146 swing high to the $1,787 low.
If Ethereum climbs above the $1,960 confluence resistance, there are chances of a new rally. The next major resistance is near the $2,060 level. A clear move above the $2,060 resistance might lead Ether toward the $2,150 zone. Any more gains could open the doors for a test of $2,250.
More Downsides?
If there is no upside break above $1,960, ETH could resume its decline. The first major support is near the $1,800 level and the 50-day simple moving average.
The next major support is near the $1,720 zone. A close below the $1,720 level might push the price into a bearish zone. The price may decline toward the $1,550 support in the stated case.
Overall, Ether’s price is holding crucial support at $1,800. If the bulls fail to protect $1,800, there could be a drop to $1,550. On the other hand, ETH might start a new increase toward $2,150.
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