Ethereum Slowly Catching Up With the Crypto King!
While there are multiple cryptocurrencies with a lot of volatility, Ethereum is breaking all grounds of weakness with its strong up move. ETH price is currently trading above a very important support level of $2170, which was earlier breached on 21st June 2021 to make a new low of $1700 on daily charts.
After a buying session at lower levels, all fundamentally stronger cryptocurrencies such as Ethereum have been making fresh highs in an attempt to retake their glorious valuations. Ethereum rally is backed by two supports, one at the lower level of $1700, while another is active at the immediate levels of $2150 – $2200.
Another news fueling higher valuations is its gain in momentum for new buyers. Within just two weeks, Ethereum has rallied by 38% and is still now showing any signs of slowing down. Other than good buying, ETH is also backed by decreasing volumes in BTC, which has become a pathway to reach new heights of success.
Ethereum Technical Analysis
100 Day Moving Average- $2554
200 Day Moving Average- $1978
Immediate Resistance Level- $2580
Strong Resistance Level- $2895
Immediate Support Level- $2185
Strong Support Level- $1717
On current charts, there is quite strong support developing around $2200 levels, if this support is backed by buying spree, there could be close to reaching the resistance at $2600. Drying traded volumes and continuation of the bull run according to MACD is making huge changes in its valuations. If things continue this way, ETH could soon break the resistances active at the $2900 levels.
With support from its rising 200 Day moving average, there is no doubt about the strength in this crypto script, but the decreasing 100 DMA is setting up the stage for further trading range. Once Ethereum starts to trade above the 100 Day Moving Average, we can expect it to enter a new bull swing.
Heikin Ashi charts on current levels indicate a sign of confusion with the price heading higher and trigger profit booking. Unclarity in the market makes a scenario for staying put for a while. As per our ETH forecast, once it starts to create clear green candles on Heikin Ashi, the price action would designate the rise of a new positive swing.
On hourly charts, Heikin Ashi is indicating some sort of selling pressure or profit booking around $2350 levels. This selling pressure is pushing ETH lower every time it attempts to rise towards $2400. Bounce back from $2200 makes it a good buying level with profit booking in $100 of momentum.
RSI is also supporting this theory with its decreasing value every time it hits past $2350. It seems like people are selling at these levels since the price is quickly retracting towards $2300. Currently, an RSI of 51 indicates a neutral take at current levels. The rise in profit booking volumes on the other hand raises some concern and demands intraday and short term traders to be cautious.