Ethereum (ETH) is retesting its early-July peak. Will it be able to pass $2,300, which is a major hurdle on the uptrend?
Ethereum (ETH) rallied as high as $2,900 in the first days of June after the May crash, but has since been in a downtrend. The only serious move in this momentum was its rise to $2,300. But in those days, the market was dominated by bears and we saw a decline towards the bottom levels again. Last week, the bottom level of $ 1,700 was tested for the second time after May. And ethereum bulls were able to defend this bottom again.
Daily chart of ETH/USDT
We are currently seeing a rising Ether chart in the daily view without correction since July 21. ETH/USDT broke the falling trendline at $2,125 on July 23. Today, it consolidated its uptrend along with the rest of the crypto market. If ETH price can stay above $2,250 today (89-days EMA), it could continue to rise.
So, what are ETH's upside targets?
For ETH to continue on its way, it must first break the last resistance price of $2,320. A one-day close above this price may allow ETH to move to the $2,500 – $2,700 band. If it enters this area, the search for a new direction in the Ethereum market may begin. Because according to the Fibonacci retracement levels, the Fib 1.272 – Fib 1.618 area is usually used as a correction zone.
However, during the bull season, we witnessed the rises from Fib 1.618 (currently $2,700 for ETH) to the Fib $2.618 levels. We can see that on ETH/USDT's daily close above $2,700, buyers can target $3,320. It is also remarkable that Fibonacci coincides with the ideal correction level of $ 3,320 fib 0.618 when measured from the May 11 ATH value to the last low $ 1,700.
Another detail for the uptrend is that the 8-day EMA cuts the 21-day EMA up. At the same time, this cross, which occurred at an average of $ 2,100, can be followed as the 2nd support price below $ 2,250. If it is broken, $1,850 would be the 3rd support price to be seen this week.
Other details about the Ethereum daily chart; stochastic RSI is at the top of the overbought zone. As long as this indicator stays above 80, it can be seen that possible corrections will be limited. Chaikin Money Flow (CMF) shows that fund inflows are more than outflows in the positive zone.
Finally, let's summarize the critical support and resistance levels as follows:
I. support: 2,250 I. resistance: 2,320
II. support: 2,100 II. resistance: 2,490
III. support: 1.850 III. resistance: 2,577
Disclaimer: The information in the content is not an investment advice. Author is not responsible for your profit or loss. Every investment involves risks and requires knowledge.