Following the sell-off in major cryptocurrencies, the price of Ethereum has made a strong comeback.
Although Ethereum had the potential to break a bearish trend line, it was rejected at the monthly pivot yesterday.
Although Ethereum appears to be heading lower, there is support in sight.
Last week, the price of Ethereum surged out to the upside and broke over a negative descending trend line. Despite the fact that ETH was denied and did not close above the monthly pivot at $2,277.76, it still has potential to rise.
ETH made a significant rebound after a five-day winning streak, rising from $1,663.62 to $2,370.65. But that’s where things came to an end for the time being.
Before the strong drop lower to this year’s low of $1,663.62, Ethereum price could not close above $2,277.76, which coincides with the monthly pivot and a triple top formation.
Buyers will have targeted the triple top to take some profit and as an opportunity for sellers to go short after such a winning sequence, so some profit-taking is normal. However, not far below where we are today, there is a new region that may entice buyers to come in.
The 200-day Simple Moving Average (SMA) is currently at $1,952.65 and has previously demonstrated its significance. Every time it has been tried before, ETH has broken cleanly to the upside or downside. The 200-day SMA has a lot of clout.
Then there’s an upward trend line from the bottom at $1,663.62, which will be a second motivation for buyers to jump in and buy Ethereum at current prices.
Chart of ETH/USD on a daily basis
For the time being, Ethereum is in a bit of a no-land, man’s so purchasers will surely be looking in that direction to get in for approximately $1,950. Similarly, sellers will aim for it in order to profit. As a result, the handover will be crucial in determining who has the upper hand.
Expect more bearish price action toward the first support at $1,648.14 if the 200-day SMA and ascending trend line both break to the downside./n
