The largest cryptocurrency Bitcoin obtaining suitable support at $25000 has halted the correction trend in several cryptocurrencies. As a result, the No. 2 digit coin Ether has been receiving demand near $1600. The aforementioned support aligned with a rising support trendline offers a strong footing for buyers to recuperate bullish momentum. Is this enough to go bullish on Ethereum coins?
Also Read: Ethereum Sees $380M Outflow from CEXs; Are Investors Losing Confidence?
Combined Support Assists Buyers Ethereum for Bullish Reversal
- A bearish breakdown from the support trendline will trigger a $10% drop in ETH
- A bullish breakout from overhead resistance will be a sign of trend reversal
- The intraday trading volume in Ether is $2.8 Billion, indicating a 33% loss.
Source- Tradingview
Amid the recent downturn in the crypto market, the ETH price has witnessed strong supply pressure in the last few days From the last swing high of $1746, the coin price tumbled 7% to currently trade at $1628.
However, a look at the daily time frame chart shows this altcoin is hovering above the combined support of the ascending trendline and $1600. A long-tail rejection from the lower side reflects the demand pressure at the aforementioned support.
If the coin price manages to rebound from this support, the ETH price will likely surge 5.8% to challenge the overhead resistance trendline near $1720
Anyhow, the crypto traders must closely watch the price action at this support. If the prices are unable to rebound in a few days, it would indicate a weakness in buyers’ conviction and a high possibility of further downfall.
A breakdown below the upper support trend will push the Ethereum coin to $1450.
1 ETH to USD = $1635.253 0.01% (24h) Buy / Sell
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Here’s How ETH Price May Restore a Bullish Trend.
An overhead trendline is carrying the current correction trend in ETH price. The coin price reverted twice from this resistance already indicating the traders are aggressive nature to sell on the bullish upswing. Therefore, for the coin price to resume a bullish trend the buyers need to break the downsloping resistance.
- Moving Average Convergence Divergence: A potential bullish crossover between the MACD(blue) and signal(orange) reflects underlying growth in bullish momentum.
- Exponential Moving Average: The 200-day EMA may act as dynamic resistance to the current correction trend.