The cryptocurrency markets have taken a breather to assess the situation in preparation for fresh buying signals. While many Altcoins are way beneath nearing all-time highs, the cryptocurrency market is not in uncharted territory at the moment. ETH rose sharply during the prior session to $2,890, capped by the moving average (MA 50). The zone is where the ETH/USD met substantial resistance last month, which is at the heart of the critical area in the $2,800-$4,300 range and has seen the most pivot points since its all-time high. In today’s session, ETH/USD pair retreated to a low of $2,555, which is far above this week’s low of $2,182. At the time of this post, the pair is seen trading at $2,659, down 7.50% on the day. Ethereum is among the stand-out cryptocurrencies of 2021. Besides emerging as a central player with the Ethereum DeFi sector activity, it has also facilitated the NFT market booming. With the DeFi sector accelerating and the booming NFTs, the Ethereum (ETH) token should head higher in the coming months.
Key Levels
Resistance Levels: $3,500, $3,200, $3,000
Support Levels: $2,500, $2,300, $2,000
ETH/USD Daily ChartAt a resistance belt formed between the $3,000 resistance and the moving average (MA 50) around $2,900, the ETH/USD has briefly halted its positive bearing. Nonetheless, the moving averages (MAs) support the larger bullish structure, and the ascending trendline indicates that the pair’s upward momentum is still intact. To the upside, the immediate resistance barrier of $2,900-$3,000, which also includes the near MA 50, is delaying additional price movements.
If the pair can successfully continue its recent advance, which began at the $1,728 low, past this durable aforementioned impediment, it can aim for the $3,500 border. The RSI is seeking to maintain gains into the positive zone, while its line is above 40, indicating greater optimism. If sellers reclaim control, initial downward friction could occur at the immediate confluence zone at $2,450 and at $2,300 ascending trendline before hitting the MA 200 support barricade.
ETH/USD 4-Hour ChartThe ETH/USD pair fell to a low of $2,555, still higher than the previous week’s low of $1,728. The pair has produced an island reversal pattern on the four-hour chart. It has also fallen well below its all-time high of 4,384, as well as the 50 and 200 moving averages (MAs). The Relative Strength Index (RSI) has been falling as well. As a result, the pair may continue to decline as bears attempt to break through $2,500.
If the market refuses to fall anymore, $2,800 could provide immediate resistance. Overall, technical analysis suggests that if the price falls below $1,728, the ETH/USD pair could suffer significant losses. Only when trading over $1,728 is the ETH/USD pair considered bullish; major resistance is found at $2,900 and $3,000. Sellers may test the $2,450 and $2,300 levels if the ETH/USD pair goes below $2,500.
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