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The recent correction in Ethereum price bounced back the combined support of $1800 and 38.2% Fibonacci retracement level. A reversal from this FIB support is considered healthy for the long bull, offering buyers an opportunity to recuperate the bullish momentum. Can the current recovery cycle in Ethereum price surpass the last swing high of $2130?
Key Points:
- The Ethereum Fear and Greed index at 60% reflects a positive sign to prolong the bullish rally.
- The bullish breakout from 1948 will kickstart a new recovery cycle
- The intraday trading volume in Ether is $4.8 Billion, indicating a 4.8 gain.
Source- Tradingview
On April 25th, the Ethereum price bounced back from the $1800 support and surged 5.5% higher to currently trade at $1923. Despite a 1% price jump today, the ETH price struggles to surpass the flipped resistance of $1948, indicating the sellers are actively defending this barrier
If the coin price breaks the $1948 barrier, the buyers will gain an early sign of uptrend resumption. With sustained buying, the ETH price may break another minor resistance of $2015 and challenge the last swing high of $2136.
Also Read: Top 10 Carbon Negative Cryptos For 2023
A daily candle closing above the aforementioned supply zone is crucial for buyers to regain trend control. Considering the trader’s own capital and risk appetite the buyer can maintain stoploss below the low of the breakout candle.
The potential rally may push the ETH price to $2400 or $2576 high.
On a contrary note, if the selling pressure is at the $1948 resistance a potential reversal may encourage sellers to form a famous bearish pattern called head and shoulder.
Technical Indicator
Moving Average Convergence Divergence: Amid the recent correction, the MACD(blue) and signal(orange) line sustainability above the midline reflect the overall market trend bullish.
Exponential Moving Average: the 50-day EMA acts as strong dynamic support during the occasional pullback in a bullish trend.
- Spot rate: $1930
- Trend: Bullish
- Volatility: Medium
- Resistance level- $2000 and $2136
- Support level- $1850 and $1775
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/assessing-in-ethereum-price-for-may-2023-entry-opportunity-and-stoploss-marked/