Ethereum broke to a new high yesterday after witnessing a steady three-day gain. It retraced today, and now looking for solid support to resume positive actions.
The second best-performing crypto by market cap accumulated for three weeks and broke out briefly to mark a 7-month high at $1,942 yesterday. That price level was later rejected.
Aside from that, the upper boundary of the channel has also served as a resistance to buying pressure. However, the recent gains suggest that volume is trooping back into the market. Buyers are now positioned as they look for another entry-level.
This impressive performance brought over a 5% increase in price since the start of the week. Although the price has retraced a bit today, providing a discount for the buyers to take more action. If they take advantage of this buying opportunity, ETH could activate a fresh rally to the August 2022 high. It currently trades at around $1880.
While this week looks more volatile than the past one, there is a need for a strong buy to sustain momentum.
It is important to note that Ethereum has managed established firm support above the $1.7k level in the past month. A decline below that level should trigger a deep retracement to the lower boundary of the channel. For now, the bulls appear to be in charge on the micro level.
ETH’s Key Level To Watch
Source: Tradingview
ETH dropped below the $1,883 level today, now marked as resistance. An increase above that level should activate a huge rally to the important $1,948 level and potentially to the last August’s high of $2,030 in the next leg up. The $2,200 resistance is next if those levels flip.
The closest support to watch for a rebound lies at $1,788, followed by $1,722 and $1,678. The $1,613 level is the next support to keep in mind in case of a crackdown.
Key Resistance Levels: $1,883, $1,948, $2,030
Key Support Levels: $1,788, $1,722, $1,678
Spot Price: $1,866
Trend: Bullish
Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Image Source: marcbruxelle/123RF // Image Effects by Colorcinch