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Wednesday, February 21, 2024

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Ethereum (ETH) Corrects Lower, Why 100 SMA Could Trigger Fresh Rally

Ethereum extended its rise and traded close to $2,900 against the US Dollar. ETH price is correcting gains and it is likely to remain strong above the 100 hourly SMA

Ethereum failed to clear the $2,900 level and it corrected lower from $2,885.
The price is still holding the $2,700 support and the 100 hourly simple moving average.
There was a break below a short-term bullish trend line with support near $2,750 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a strong increase as long as there is no break below the 100 hourly SMA and $2,650.

Ethereum Price Is Holding Support
Yesterday, ethereum started a fresh increase above the $2,650 resistance zone. ETH gained pace above the $2,700 and $2,750 levels. There was also a break above the $2,800 level and the 100 hourly simple moving average.
However, the price failed to continue higher above $2,900. A high was formed near $2,886 and the price recently started a fresh decline. There was a break below the $2,800 support zone. Ether price even traded below the 23.6% Fib retracement level of the upward move from the $2,530 swing low to $2,996 high.
There was a break below a short-term bullish trend line with support near $2,750 on the hourly chart of ETH/USD. The pair is now testing the 50% Fib retracement level of the upward move from the $2,530 swing low to $2,996 high.

Source: ETHUSD on TradingView.com
It is also holding the $2,700 support and the 100 hourly simple moving average. An initial resistance on the upside is near the $2,780 and $2,800 levels. The first major resistance is near the $2,850 level.
The main breakout resistance is now forming near the $2,900 level. A close above the $2,900 level will most likely call for a test of the $3,000 barrier in the near term.
Dips Supported in ETH?
If Ethereum fails to clear the $2,800 and $2,850 resistance levels, it could extend its decline. An initial support on the downside is near the $2,700 level.
The main support is now forming near the $2,680 level and the 100 hourly SMA. A downside break below $2,680 and $2,650 could open the doors for a larger decline. In the stated case, ether price might revisit USD 2,500.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently below the 50 level.
Major Support Level – $2,650
Major Resistance Level – $2,850

Claude Freeman
Claude Freeman
I have been in the Crypto industry for over 10 years. I have seen it grow from a small niche to a global phenomenon. I have written for some of the most popular publications in the space, including CoinDesk and Bitcoin Magazine. I am currently working on my second book, which is about the history of money and how cryptocurrency is changing the way we think about it.

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