Ethereum bounces off crucial support area but faces major hurdle
Ethereum price is -3.3% down but its rebound above $390 is key to bulls
While Ethereum (ETH) and most other altcoins have traded lower in the past 48 hours, technical indicators suggest that the price of ETH is likely to recover above the major resistance area within the coming days.
According to on – chain data provider Glassnode, Ethereum’s realised price recently hit a high last seen in January 2019. As per the data, the metric’s value stands at $246 after jumping 21% since April. Realised Price is a crucial indicator as it gives the average price of every Ether coin at the time it last moved.
ETH/USD
The breakdown to lows of $382 meant bulls lost momentum and a key support area by failing to hold gains around $405. The dip also meant Ethereum risked further losses, a scenario that could prove to be detrimental to bulls’ short term plans if it plays out again.
However, prices have since bounced off the support area and holding the pivotal area bodes well for buyers. The recovery puts prices above the 23.6% Fibonacci retracement level that marks the downswing from a $411 high to $382 low and highlights $395 as the immediate resistance level.
If bulls manage to hold off bears around this area, they could mount an attack at the next target marked by resistance at the 50% Fibonacci retracement level of the aforementioned swing.
A bullish scenario is forming on the daily chart with respect to Ethereum holding the $390 area. However, the MACD and the RSI on the hourly chart are suggesting struggle, which means that the bulls need to discover an upside momentum on increased buying pressure to push ETH/USD above the 100 – SMA. Achieving this will provide the encouragement bulls need to attempt breaching the wall at $420.
If bulls maintain the bounce off the trendline, a breakout is likely with ETH/USD blasting out of a long term descending triangle pattern.
On the flip side, a rejection at current price levels opens up Ethereum to an immediate drop to lows of $385. A further drawdown from the $385 support level risks putting bears in charge and opening up an easy route to lows of $368.
The post Ethereum bounces off crucial support area but faces major hurdle appeared first on Coin Journal.
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Benson Toti, @KhareemSudlow
